Cr.FA study plan
Cr.FA · Give each week a clear focus.
8 weeks · About 7 hours per week
Financial Reporting and Analysis & Corporate Finance and Valuation
Build a one-page map of the three primary financial statements showing how each line item links to the others, and trace one depreciation entry through all three statements.
Compute free cash flow to the firm and free cash flow to equity from a single set of annual figures and reconcile why the two differ.
Apply the DuPont decomposition (three-factor and five-factor) to two companies and explain which lever drives the ROE gap.
Derive the weighted average cost of capital from scratch, including how to unlever and relever beta for a comparable-company set.
Write out the assumptions that break each of the main valuation models (DDM, FCFF, residual income) so you can spot when a question is testing model applicability.
Your checkpoint
A single reference sheet (max 2 pages) covering statement linkages, FCFF/FCFE formulas, DuPont, and WACC mechanics, plus 20 self-written practice computations with worked answers.
Financial Reporting and Analysis & Corporate Finance and Valuation
Work through the revenue recognition and lease accounting rules well enough to adjust reported figures into a comparable basis across two firms.
Convert an operating lease into a finance lease using the present-value-of-remaining-payments approach and quantify the effect on leverage and interest coverage.
Value a company using both a two-stage DDM and a two-stage FCFF model and explain why the outputs diverge.
Identify accounting warning signs (accruals quality, capitalization of costs, channel stuffing proxies) in a described set of disclosures.
Your checkpoint
A written valuation memo of 600-900 words on one company with a defensible intrinsic value range, the sensitivity of that range to WACC and terminal growth, and a list of accounting red flags you tested for.
Equity Investments and Equity Research & Quantitative Methods and Financial Modeling
Build a comparable-company analysis for one sector, selecting and justifying the multiples and adjusting for non-recurring items.
Compute and interpret the standard regression output (slope, intercept, R-squared, standard error of the slope) for a simple return-based model.
Distinguish when to use harmonic mean versus arithmetic mean for averaging price multiples and demonstrate the difference numerically.
Evaluate a company's competitive position using Porter's five forces and link each force to a specific line in the forecast.
Your checkpoint
A spreadsheet-based relative valuation with at least five peer companies, including the multiple selection rationale and a 300-word note on which peer set is most defensible.
Quantitative Methods and Financial Modeling & Economics and Market Environment
Solve time-value-of-money problems (annuities due, perpetuities, uneven cash flows) without a formula sheet under a 90-second-per-question constraint.
Compute net present value, internal rate of return, and profitability index for mutually exclusive projects and explain when the rankings conflict.
Explain how monetary and fiscal policy transmission affects interest rates, inflation, and currency in a described macro scenario.
Distinguish the four market structures and predict pricing behavior and long-run economic profit in each.
Your checkpoint
A timed 40-question quantitative mock (self-written or from permitted practice sources) scored and reviewed, with every missed item rewritten as a corrected one-line rule.
Fixed Income and Derivatives & Economics and Market Environment
Price a fixed-coupon bond, compute yield to maturity, and derive duration and convexity, then use them to estimate a price change for a 100bp shift.
Explain the spot, forward, and par curve relationships and calculate a forward rate from two spot rates.
Compute the payoff and profit of the four basic option positions plus a covered call and a protective put at expiry.
Interpret exchange-rate quoting conventions and compute a cross rate, then explain the interest rate parity relationship.
Your checkpoint
A fixed income and derivatives formula sheet with 15 worked problems covering bond pricing, duration, forward rates, and option payoff diagrams described in words.
Ethics and Professional Standards & Portfolio Management and Wealth Planning
Apply the Code and Standards to at least ten short vignettes, correctly identifying the standard violated and the required action.
Distinguish the asset manager code requirements from the GIPS standards and identify which situations trigger GIPS compliance claims.
Construct an investor's risk tolerance and constraints from a described profile and map them to a specific asset allocation range.
Explain the behavioral biases (loss aversion, overconfidence, anchoring, mental accounting) and describe one advisor intervention for each.
Your checkpoint
An investment policy statement for one hypothetical client, plus a 15-vignette ethics log where each entry names the standard, the violation, and the corrective action.
Alternative Investments and Risk Management & Fixed Income and Derivatives
Compare hedge fund, private equity, real estate, and infrastructure strategies on liquidity, fee structure, and return drivers.
Compute the risk-adjusted performance metrics (Sharpe, Treynor, information ratio, Sortino) for a set of portfolio returns and explain when each is appropriate.
Explain value at risk approaches (historical, parametric, Monte Carlo) and state the limitations of each in a described portfolio.
Identify the main risks in a derivatives position, including counterparty, basis, and model risk.
Your checkpoint
A risk report of 500-700 words on a hypothetical multi-asset portfolio, including computed performance metrics, a VaR estimate with stated method, and three named risk exposures with mitigants.
Ethics and Professional Standards & Financial Reporting and Analysis & Corporate Finance and Valuation & Equity Investments and Equity Research
Complete two full-length timed mock exams under exam conditions and record per-domain accuracy.
Re-teach every domain where mock accuracy fell below 70% by rewriting the missed concept in your own words.
Rehearse the ethics decision framework until vignette classification takes under 60 seconds per item.
Consolidate all formula sheets into one final page and verify each formula against a worked example.
Your checkpoint
A final review dossier with mock scores by domain, a prioritized list of remaining weak areas, and a one-page master formula sheet you can reproduce from memory.
Milestones
Week 2: Can compute FCFF, FCFE, and WACC from raw financials and explain each input's source without notes.
Week 4: Scores at least 70% on a timed 40-question quantitative set and can state the rule behind every missed item.
Week 6: Correctly classifies at least 8 of 10 ethics vignettes by standard and required action.
Week 8: Scores at least 75% overall on two full-length mocks with no domain below 65%.