CFA: Is it worth it? (debt, transaction, analysis, money)

[VTHokieFan]

Basically, I want to go into internal corporate finance: capital budgeting decisions, WACC analysis, debt optimization, treasury stock decisions, mergers/acquisitions etc. Is the CFA worth going after in order to get into this field? My perception is that the CFA is for portfolio managers and stock analysts, moreso than corporate finance types. I already have a CPA as well, so I can understand the accounting implications of these sorts of transactions. I feel like having a CFA/CPA would be a great combination, but would appreciate any opinions.

[skinnayyy]

It would be not very useful. for internal corporate finance, a lot of those things that you mentioned are not actually done by the corporation. They're contracted out to the investment banks and PE firms that actually deal with that.

For internal corporate finance, especially with the amount of money, and time invested to get the CFA Charter, you would be better off spending it elsewhere. Also, you have to have 4 years of experience that internal corporate finance would not qualify for so you would never be able to get the charter unless you worked at a buyside firm for 4 years after completing all 3 exams.

[ragnarkar]

The CFA and Investment Banking

Your concerns are spot on.. it's only useful for Portfolio Management and Equity Research and if you've picked those 2 specialties, having the CFA designation will be light night vs. day.

Passing Level 1 and maybe 2 and stopping there is a huge waste of time, IMO.. if you decide to do it, go for all 3 levels and give it your all. It's gonna be tough and there will be times you'll feel like giving up but your ROI (no pun intended) from passing all 3 exams (even if it takes you multiple attempts at some levels) will be FAR higher than giving up (except at Level 1.)

Back to studying Level 3.. wake me up after June 7..