BFC-B-01: Foundations of Finance

Summer Term 2025

The module introduces the fundamental concepts and methods of finance and is designed for students in the early stages of their Bachelor's studies. It focuses on key theoretical and practical issues in finance, particularly with regard to investment decisions, capital requirements, and capital raising. Students become familiar with the main forms of financing – such as equity and debt financing, as well as internal and external financing – and gain an understanding of the relationships between investment, financing, and liquidity.

A key emphasis is placed on the time value of money and the application of present value and net present value methods to evaluate investment projects. In addition, the module covers the basics of capital structure, financing via financial markets, and corporate valuation. Another important aspect is the interaction with financial accounting: students learn how financial decisions are translated into periodic performance measures and how the balance sheet, income statement, and cash flow statement can be used to analyze and manage financing activities.

The aim of the module is to provide foundational knowledge in finance that serves as a basis for more advanced courses in finance, accounting, and management control.

Course and exam language: German

The corresponding bibliography and further information on the course can be found in the course catalogue ("Modulhandbuch", German only).

Course material as well as a detailed course syllabus will be provided on the Virtual Campus. The access code will be communicated in the course of the first lecture and may be requested by e-mail.

Registration and deregistration for the exam online through FlexNow! during the official registration period of the Faculty for Social Sciences, Economics, and Business Administration.