William Welch

When is the price of a stock too high to be justified?

That is a question that investors and analysts alike need to answer as they make investment decisions. In the 1990s, a number of company’s stocks were priced very high relative to their free cash flow—what a company generates through its operations minus what it needs to maintain its capital.

The justification for the high stock prices? That the company’s growth prospects were very high. However, common sense and experience would say that there had to be something truly extraordinary about a market prospect for it to grow at an exceptionally high rate over the long term. If there were a way that people could evaluate whether the high prices were justified by high growth prospects, it would be extremely helpful.

Help came in the form of research by William Welch, chair of the Department of Finance in the College of Business Administration, who has written or co-written approximately 25 articles, and two former college colleagues, Simon Pak and Maria Deboyrie. They developed a model to look at a company from the point of view of free cash flow as well as from the perspective of what it would take for the company to sustain a high level of growth over time.

“There were models that enabled people to look at the issue when the company has positive free cash flow, but prior to our work, there was no model for companies with negative free cash flow,” he said. “As a result, our research was a major breakthrough, giving analysts and investors an additional parameter for assessing whether high growth prospect stocks were under- or over-priced.”

Part of what was revolutionary about the work was the mathematics that permitted the calculation of the required duration of the fast growth of a negative cash flow necessary to justify a stock’s high market value.

The model of growing a negative cash flow to a positive value was new,” Welch said. “Pak figured out a way to grow a negative number into positive territory in a continuous fashion through some pretty high-level mathematics. Consequently, we could look at the previously-un-modeled issue of negative cash flow.”

According to the authors, because their model “can be applied to companies with current negative free cash flow, [it] is very useful for the valuation of many young companies' stocks that are in their early growth (still with negative free cash flow) stages.”

An explanation of the model and of the equations used in it was published in an article titled “Are High Stock Market Prices Justified? The Stock Market Price and the Implied Duration of Supernormal Growth,” in the Journal of Investing, a highly-regarded finance publication.

The authors applied the model themselves, looking at several companies whose stock seemed overpriced. They were surprised by the results.

“We discovered that, in fact, the prices were not out of bounds, but they were more reasonably-priced than we had assumed,” said Welch, who had framed the problem in terms of duration and who wrote the background section which set the new model in the context of previous research.

He assumes that others may have done a similar exercise.

“The actual computer model is proprietary, but we included the equations in our article, so a programmer could have used them to create a model,” he said. “Financials would be put into the model and then they would run the model—throughout the trading day or at the end of day—to see the implied duration.”

Though Welch acknowledged that research is a lot of work, he also finds it fun, “something with a practical application. Plus, I enjoy the actual modeling and the opportunity to answer a specific question using modeling techniques,” he said.

FOCUS ON

.: Entrepreneurship Hall of Fame honors two business school alumni and a leading South Florida executive.

Albert Santalo (EMBA '97), president and CEO of Avisena	Glenn J. Rufrano (MSM '76), president & CEO of New Plan Excel Realty Trust, Inc.	Manny Medina, chairman and CEO of Terremark Worldwide, Inc.

A panel of judges representing the business community and previous honorees selected this year's Entrepreneurship Hall of Fame inductees, who will be recognized on Wednesday, May 17th at the Parrot Jungle Island during the college's seventh annual Entrepreneurship Hall of Fame Luncheon and Induction Ceremony. 

Albert Santalo (EMBA '97), president and CEO of Avisena, will receive our "Founder" award, and Glenn J. Rufrano (MSM '76), president & CEO of New Plan Excel Realty Trust, Inc., will receive our "Builder" award. The 2006 South Florida Entrepreneur of the Year award, given to a non-alumnus/a, will be presented to Manny Medina, chairman and CEO of Terremark Worldwide, Inc.  The event also will recognize winners of the Howard J. Leonhardt New Venture Challenge, a student business plan competition.

The Entrepreneurship Hall of Fame is the college's largest alumni event each year, bringing together more than 500 alumni and other local business leaders. Please save the date now and join us for this spectacular event. Register today on our web site. 

.: REAAC seeks members for its 2006-2007 Board of Directors.

The Real Estate Alumni Affinity Council (REAAC), a sub-group of the Business Alumni Chapter, is seeking the involvement of committed alumni and leaders in the real estate community to spearhead the organization during the 2006-2007 academic year.  

REAAC’s purpose is to create a strong network of alumni working and/or interested in developing a career in real estate as well as those who want to support the growth and advancement of the college's Jerome Bain Real Estate Institute, its undergraduate and graduate real estate programs, and the college’s Real Estate Student Association.

If you are interested in joining REAAC’s Board of Directors or know of an alumnus/a who would make a great candidate, please visit our web site http://business.fiu.edu/alumni for position descriptions and a nomination form.

Nominations will be open from May 1st through May 12th. Nominee’s portfolios will be reviewed by the current REAAC board and a final slate of officers will be presented to Business Alumni Chapter members at the REAAC Speakers Luncheon on May 31st for voting.  Results will be announced at the event which will take place at The Bankers Club.  Visit http://business.fiu.edu/alumni for additional details.

.: Alumni Notes

• Luis Arrizurieta (BA ’87) has been appointed chief financial officer of J.I. Kislak, a real estate investment and management company based in Miami Lakes, FL.

• Amy E. Wagner (MBA ’89, BHA ’87) was named senior vice president, investor relations, Burger King Corporation.

• José Tillan (BBA ’90), vice president of music and talent for MTV Latin America, will lead the music, programming and production of MTV Tr3s (Three), a new channel that will recognize and celebrate Latino youth and their unique identity. It will be the validation, voz and vida of young U.S. Latinos by celebrating their influence, cultures, and languages.

• Esteban Nuñéz (BBA ’93) has been named vice president of commercial real estate for Gibraltar Private Bank & Trust.

• Craig Kirsner (MBA ’04) was named volunteer of the year by Hands-On Miami.

Front row, left to right: Tita Kourany, CIBER associate director;
Elsa Villar, program assistant; Sonia Verdu, program coordinator;
Mary Ann Von Glinow, CIBER director. Back row, left to right: Kranthi Atmakur,
computer programmer analyst; Juan Fernandez, program financial specialist

The Center for International Business Education and Research (FIU-CIBER) in the College of Business Administration at Florida International University received a major funding grant for 2006-2010 from the U.S. Department of Education. The award is for $1,360,000 for four years ($340,000 per year). FIU-CIBER, which has previously received major grants from the department, was one of 31 CIBERS across the country to get the financial support.

“This year, the competition was very stiff, but we deliver unique programs that are clearly recognized in the international business community,” said Mary Ann Von Glinow, CIBER director and professor in the Department of Management and International Business in the college.

The grant proposal enumerated 47 activities FIU-CIBER felt met legislative mandates. The authors grouped them under two broad themes: “Improving U.S. International Competitiveness in Today’s World of Heightened Security” and “Using Languages and Technology Wisely in International Business: Improving K-12, College, and Organizational Absorption.”

The proposal explained that FIU-CIBER’s goal “is to make all our constituents more competitive in the global economy and continue as a local and regional resource for promoting U.S. businesses’ global reach.”

“Our emphasis on improving U.S. international competitiveness in a world of heightened security and on using languages and technology wisely speaks to the heart of issues confronting global commerce today,” Von Glinow said. “Having the grant renewed makes it possible for us to continue to offer our teaching, outreach, and research programs without disruption.”

Being recognized through the grant is one more sign of the increasing prominence of the international business programs offered in the college.

“When we were funded for the first time in 1995, the university wasn’t on anyone’s radar,” Von Glinow said. “Today, with the renewal, we are clearly a force to be reckoned with.”

.: Visits with Chinese academic leaders lay foundation for future partnership.

Beginning a year ago, a number of visits between officials of Qingdao University, a major Chinese institution, and the Alvah H. Chapman Graduate School of Business began to establish the framework for a possible Dual Degree partnership.

The Dual Degree program, which currently has 21 institutional partners, provides a way for students to earn an MBA from their “home” institutions and a Master of International Business (MIB) from Chapman. They also can remain in the United States for an additional year to work under the Optional Practical Training program.

Zhaoxun Jing, vice president, Qingdao University, and Chapman School
Associate Dean Tomislav Mandakovic sign the minutes of their February meeting,
bringing a partnership one step closer.

In April, 2005, five representatives from the university, including Florida International University’s Acting Provost Ronald Berkman and Peng Lu, the Chapman School’s coordinator for Chinese programs and the university’s director of China projects, made the initial trip to Qingdao, Miami’s sister city in China. Qingdao University’s population includes 34,000 students and 2,000 faculty and staff members. A month later, Chapman Dean José de le Torre and Lu traveled to Qingdao for further meetings.

“Qingdao ranks in the top seventy universities in China,” Lu said. “It also is a high-tech city with many important companies—both Chinese and international—located there.”

Representatives from the college with representatives from Qingdao University
at the signing ceremony in China.

With a visit to the University Park campus in February, 2006, by three officials from Qingdao University, the possibility of the Dual Degree partnership grew closer to fruition. The guests were Zhaoxun Jing, vice president; Yanshuo Tang, dean of the College for International Studies; and Baolin Yu, deputy director general of International Affairs. On the college’s side, Tomislav Mandakovic, associate dean of the Chapman School; Anna Pietraszek, newly-appointed director of Chapman Admissions; Paola Moreno, program manager of the International MBA (IMBA), Master of International Business (MIB) and Advanced Diploma in Business Administration (ADBA) programs, and Lu attended.

A number of very specific details were worked out at the meetings that took place in Florida, including the requirements the students in Qingdao University’s master’s degree in management program will need to meet to be admitted to the MIB program in the Chapman School.

Representatives from Qingdao University with representatives from the Chapman School
at their meeting on the University Park campus.

The sessions at University Park were followed in March, 2006 by a visit to Qingdao by Mandakovic, Lu, and Pietraszek, at which time the discussions continued.

“We coupled an MIB student international trip with this meeting,” Pietraszek said. “It was an ideal opportunity for us to move the process along. We signed the minutes from our February meeting, and that will be the basis for our agreement, which we expect to sign soon.” [See related story below.]

The college already has a signed agreement with the Tianjin University of Commerce (TUC), which has enrolled 300 students—considered to be Florida International University students—in the School of Hospitality Management.

.: Wertheim lecture generates positive energy, offering insider’s insight into the future of the oil industry.

The topic was timely. The discussion was engaging. The audience was enthusiastic. All and all, the college’s Herbert A. Wertheim lecture held on April 6, 2006, at Florida International University was deemed an enriching experience for the some eighty faculty, students, alumni, and guests in attendance.

The guest lecturer was Jesse J. Tyson, president and sales director for ExxonMobil Inter-America, Inc., and a member of the college’s Dean’s Council. His presentation, entitled “The Outlook on Energy: A View to 2030,” offered a long-term outlook for worldwide economic growth and energy demands as well as for oil and gas supplies. According to Tyson, ExxonMobil incorporated the views of organizations such at the International Energy Association, the U.S. Department of Energy, and other leading economic energy experts when compiling its detailed research.

College Executive Dean Joyce J. Elam and Wertheim lecturer Jesse J. Tyson,
president and sales director, ExxonMobil Inter-America, Inc.

“Tyson gave us a clear understanding of the scope and dynamics of the global oil industry—what’s being produced, where it’s being produced, and what the long-term outlook is,” said Jerry Haar, professor in the Department of Management and International Business in the College of Business Administration and associate director of the college's Knight Ridder Center for Excellence in Management. “He also gave us keen insight into the role ExxonMobil is playing in the development of new technologies and how the company balances the quest for new energy resources with environmental conservation.”

According to Haar, the presentation and the question-and-answer session that followed it “generated great interaction and dialogue between Tyson and the lecture attendees.”

Dianne Cordova, a management major who is graduating this May, is glad she went to the lecture.

“The topic was extremely relevant to what’s going on today in the world, not to mention at local gas stations,” she said. “It was a worthwhile, well-planned event. The discussion was open and thought-provoking. Plus, the event provided a great networking opportunity.”

The luncheon offered some lessons of a more personal nature to Mark Elbadramany, who will graduate in December, 2006, with a double major in international business honors (IB Honors) and finance. 

“Certainly I learned a lot about the realities of the oil industry,” he said. “But Tyson also offered some inspirational advice based on his own experiences. He encouraged students like us—who are on the brink of becoming young professionals—to always remember who we are and where we come from. He emphasized the importance of remaining true to our personal beliefs and principles, wherever a career may take us. That in itself is a valuable lesson.”

This Wertheim lecture was the second in the series for the 2005 to 2006 academic year—and an excellent example of the ongoing commitment to bring distinguished speakers and experts in business leadership and entrepreneurship to campus. Herbert A. Wertheim, a long-time supporter of the university and the college and a member of the university’s Board of Trustees, endowed the lecture series in 1993. 

.: Beta Gamma Sigma holds spring induction.

The most prestigious national business honor society, Beta Gamma Sigma, has 71 new members from the College of Business Administration. The top ten percent of senior undergraduate students and the top twenty percent of graduate students were inducted at a banquet on April 11, 2006, attended by 170 family members and friends of the students.

At the ceremony, Kenneth Rojas, an accounting major, read what the letters mean—Bebaeos (honor), Gnosis (wisdom), and Spoude (earnestness)—and called out the names of the inductees. Executive Dean Joyce J. Elam, who is the president of the Beta Gamma Sigma chapter in the college, conducted the ritual of the induction.

“Beta Gamma Sigma offers opportunities for student and corporate networking,” said Anezka Martinez-Rios, coordinator of the event for the Executive Dean’s office. “Also, some employers specify that they want members as candidates for positions within their companies.”

Clifford Perry, associate dean, academic affairs and undergraduate programs, serves as faculty advisor to the chapter.

Membership in Beta Gamma Sigma is the highest international recognition a business student anywhere in the world can receive in an undergraduate or graduate program at a school accredited by AACSB International—The Association to Advance Collegiate Schools of Business. In the college, those inducted into the society as undergraduates are eligible again as graduate students if they once again attain the required class ranking.

.: Expert sheds light on important, but rare, aspect of entrepreneurship.

Erkko Autio, director of the HEC Institut Stratège in Lausanne, Switzerland

High-growth entrepreneurial firms represent a small minority of all new businesses, yet they create the bulk of new jobs. Despite their significance, though, it isn’t easy to find information about these high-growth firms precisely because of their rarity. The largest survey conducted to date is the Global Entrepreneurship Monitor’s (GEM) analysis of high-expectation new firms.

It was to those findings that Erkko Autio, director of the HEC Institut Stratège in Lausanne, Switzerland and professor in technology-based venturing, turned his attention when he spoke on “High-Growth Entrepreneurship in a Global Perspective” on April 13, 2006 at a Eugenio Pino and Family Global Entrepreneurship Center-sponsored event at Florida International University.

He was the ideal person to do so.

“After seven years of experience as a core member of the GEM coordination team, Autio has been able to explore the factors leading to growth-oriented new firms,” said Paul Reynolds, professor in the College of Business Administration’s Department of Management and International Business and director of the Pino Center’s Entrepreneurial Research Institute.

In his lecture, Autio discussed differences between countries in terms of high-expectation entrepreneurial activity, explored the backgrounds of high-expectation entrepreneurs, and looked at how these firms react to national entrepreneurial frameworks.

“His analysis contributes to our understanding of how the United States maintains a leadership role in this high-potential area of entrepreneurship,” said Reynolds, one of 25 people who attended the lecture.

.: Festive dinner helps BBA+ graduates celebrate their new status.

Forty students who recently completed the BBA+ program had a chance to mark their achievements with friends, family, faculty, and program staff at a dinner at the University Park Faculty Club on April 7, 2006. The seventeenth group to graduate from the BBA+ Weekend option included 24 students. Sixteen students, representing the second group to complete the BBA+ Sunrise at the FIU Broward Pines Center also graduated. The students received their diplomas at the spring commencement ceremonies on May 2, 2006.

BBA+ Sunrise class

Suzette Andre was named valedictorian of the BBA+ Weekend program and Rita Noa received the leadership award. In the BBA+ Sunrise group, Raymond Jarrett earned recognition as valedictorian and Tamara Angel-Rogers received the leadership award.

“I chose the BBA+ Weekend program because I had just finished at Miami-Dade College, was looking for job, and wanted to do something in the meantime,” said Andre, who works full time in the SunTrust Bank’s support center, which services branches in the entire Florida region. “I knew that once I got a job, a Saturday program would be ideal.”

Donald Roomes, program director, and Rita Noa, BBA+ Weekend graduate, who received the Leadership Award

It took her a scant two months to land her first position at SunTrust as a teller coordinator, so she was delighted by her choice. Not only was the schedule suitable, but Andre feels the program was important in many other ways.

“It showed me how to look at issues from different perspectives, and I find that I apply my knowledge of business and other topics—such as how to communicate effectively—in my personal as well as my professional life,” she said.

She credits a support network—particularly her husband—and her own focus on “discipline and organization” with enabling her to succeed.

“The degree is something I really wanted, so I was willing to put in the extra effort,” she said. “Also, my philosophy is that whatever I do is a reflection of me, so I did everything in the program with that in mind.”

The students gave two awards. The BBA+ Weekend group gave the Circle of Excellence award to Constance Bates, associate professor in the Department of Management and International Business, and the BBA+ Sunrise honored Clifford Perry, Department of Management and International Business and the college's associate dean for undergraduate studies, with the same award.

The ceremony also was marked by the presentation of a special award to Donald Roomes, director of the BBA+ programs, for his ten years of outstanding service and dedication. Perry presented a plaque to Roomes, who was “completely taken by surprise” by the honor.

“He began as coordinator in January of 1996 and two years later, he was promoted to director of what was then called the Weekend BBA,” said Angie Letona, fiscal assistant in the BBA+ program who helped engineer the award.

BBA+ Weekend class

.: Students participate in “Experiencing China Tour.”

Master of International Business students visit the Tianjin Economic Development Zone (TEDA).

Though they lost a day when they crossed the International dateline en route to China, a group from the College of Business Administration more than made up for it on their arrival. From March 20-29, 2006, participants in the “Experiencing China Tour” traveled to Beijing, Tianjin, and Qingdao. The group included 29 Master of International Business (MIB) students, two alumni, and three representatives from the Alvah H. Chapman Graduate School of Business: Associate Dean Tomislav Mandakovic, Anna Pietraszek, former MIB program manager and now director of Chapman’s Admissions Office, and Peng Lu, coordinator for Chinese programs and director of China projects at Florida International University.

The Chapman School offered an itinerary that included a mix of sightseeing, visits to educational institutions, and an introduction to doing business in the country.

“We visited some of the now-familiar landmarks in China, such as Tiananmen Square, the Great Wall, and the Forbidden City,” said Onyekachim Okoli, one of the student participants who also helped coordinate the trip. “But we were not there as tourists. We were there to have a learning experience.”

They learned about the Chinese educational system from their Chinese counterparts, spending time at Tianjin University of Commerce (TUC) and Qingdao University, considered one of China’s major institutions of higher learning.

Construction on the TUC campus is underway on a new building for Florida International University’s School of Hospitality Management, which has established a program there with 300 students enrolled.

“The Chinese students were so happy to meet their counterparts from the States,” said Pietraszek. “Our students were the first to visit the new construction area.”

In Tianjin, the group also learned about the business aspect of life in China. They visited the Tianjin Economic Development Zone (TEDA), the so-called “home for multinational companies in China” which hosts 104 Fortune 500 companies, and went to the sites of large American companies such as Rinker.

During their three-day stay in Qingdao, one of the country’s top five industrial cities, the group went to Haier Corporation, the largest electronic company in China and Tsingdao Beer, the country’s largest brewery.

Okoli was particularly impressed by the friendliness, welcoming nature, and high principles of the people.

“They are very hard working,” he said, “and even though there is a high level of poverty, they would refuse tips at the restaurants. Although language was a problem, we all tried hard to communicate.”

.: Forum focuses on the value of strategic planning for family businesses.

Alan Carsrud, executive director, Eugenio Pino and Family Global Entrepreneurship Center, with Jesus Rene Capó, chief information officer, El Dorado Furniture.

Navigating the dynamics of planning for family members inside and outside a company can be challenging for any family business—making this an ideal topic for the Family Business Forum held at Chispa Restaurant in Coral Gables on April 25, 2006.

The Eugenio Pino and Family Global Entrepreneurship Center hosted the event. Guest panelists included Jesus Rene Capó, chief information officer of family-owned El Dorado Furniture; Derek Capó (BBA ’03), analyst with Everest Capital; and Miguel Rey, president of Renaissance Executive Forums. Rey presented an overview of the importance of long-term strategic planning plus provided excellent tips on what works and what doesn’t in the family business environment. The discussion then turned to the Capó family members, who offered insights into their own successful planning strategies.

“The Capós are following a strategic plan that allows for sustainable growth,” said Alan L. Carsrud, executive director of the Pino Center. “Derek is gaining valuable experience outside the core family business. Whether he returns to the family business or serves as an adviser, all will benefit from the knowledge and fresh perspectives he can bring back to El Dorado Furniture.”

More than forty people, including alumni, accountants, attorneys, investors, and family business owners attended the Forum. The event began on a lively note with salsa music, breakfast, and Cuban coffee, thanks to Chispa, which happens to be an excellent example of a successful family business.

Eric and Brian Dosal were there with father Alberto Dosal, president and CEO of Compuquip Technologies, the largest systems integration and technology consulting company based in South Florida. Eric and Brian work with their father, currently as outside account managers in the systems integration group. Maintaining a commitment to their family business is important to both father and sons.

“My father was the fourth generation in his family’s original business and passing on the family legacy means a lot to him,” Eric said. “The Forum addressed the unique needs of a family business and provided an excellent opportunity to learn how others are addressing the challenges we face every day.”

The last in a series of three this academic year, this Forum on strategic planning was the second one the Dosals attended—but they’ll definitely be back for future ones.

“We gathered some sound advice about how to separate family from business,” Brian said. “What’s more, some of the recommendations reinforced that we are already doing the right things, which is always good to hear.”

Sponsors for the Forum were the Ewing Marion Kauffman Foundation; Holland & Knight; and Rachlin, Cohen & Holtz, LLP. Partners were the Coral Gables Chamber of Commerce and the College of Business Administration’s Business Alumni Chapter. Plans are in the works for next year’s Forum series. For more information about the Family Business Forum or the Florida International University Institute for Family Business, visit: http://www.entrepreneurship.fiu.edu/family_business.htm.

.: Skills for Effective Management leaves a lasting impression on participants.

Learning to manage undoubtedly is one of the most challenging and career-boosting skills to master. Whether it be managing one person or many departments, most managers face the tasks of solving problems, handling conflicts, and negotiating with co-workers and vendors—and those are just for starters.  But participants in the College of Business Administration’s Executive & Professional Education’s two-day Skills for Effective Management program learn how to develop these skills for greater effectiveness on the job. 

Managers from the Puerto Rico Tourism Company as well as from the university learned how to communicate more productively with co-workers, to create alternate solutions to seemingly dead-end problems, and to secure positive commitment and outcomes from those with whom they negotiate on a daily basis  The course also covered strategies for mentoring, coaching, networking, and motivating staff.

“This program met all my expectations,” said Nareiso A. Moreno, NE regional business development manager for the Puerto Rico Tourism Company.
 “I’ll be able to use the management strategies I learned.  My awareness of the people I work with and manage has been enhanced by this seminar.  I’ll be more enthusiastic at work and at home.”

Taught by Ron Gilbert, associate professor in the Department of Management and International Business, the program gives participants a host of tactics for improving their leadership styles.

“I was quite impressed,” said Candice Coutain, office manager, Executive & Professional Education. “This was an excellent seminar; Gilbert was terrific in delivering the material and kept the class interesting and enjoyable.  He made me comfortable so I could express myself.”

“We should offer this excellent course to our managers in order to complete their training,” said Nyrma Morales, general manager for Latin America and the Caribbean, Puerto Rico Tourism Company. “This is a great seminar for top management as well,” added Teresa Morales, regional director for the Puerto Rico Tourism Company.

Developed for both new and senior managers, Skills for Effective Management offers participants tangible performance results.  For more information on this and other programs, please visit http://epe.fiu.edu.    

.: VITA program eases some tax pain.

Myron Lubell

Not only did tax payers get an extra two days to file their returns this year thanks to April 15 falling on a Saturday, but also low-income earners in the area benefited from the efforts of 120 hard-working students from the College of Business Administration, trained to complete all the required paperwork for filing. They were participants in the IRS’s Volunteer Income Tax Assistance (VITA) program, which the college offers as part of its Civic Engagement Initiative and in which students work with the Internal Revenue Service (IRS) assisting low-income taxpayers.

Myron Lubell, associate professor, School of Accounting, who founded the VITA program at Florida International University in 1980 and taught it for five years in the past, recruited the students and conducted the training sessions during January 2006.

David Lavin

In addition to the training, the VITA program also requires that students complete an open-book qualifying examination before assisting with the returns.

David Lavin, who led the VITA effort in the college for a number of years as a faculty member in the School of Accounting, taught the volunteers how to do the returns for international students at the university.

With their training completed, the students went into the community during tax time, working at two sites: the Navarro’s Pharmacy at 12000 SW 8th St. and the José Mas Canosa Youth Center at 250 SW 114th Ave. Each spent a total of twenty hours preparing returns.

When the count was in, the students had completed a grand total of 351 returns.

The college’s Civic Engagement Initiative creates and supports projects that help students experience the importance of service and community leadership. More information about both the Civic Engagement Initiative and VITA—which the college has offered since the 1980s—is available at http://business.fiu.edu/service/index.htm.

.: “College Day” helps high school students see their future.

Over the past months, volunteers from the College of Business Administration have been going to Miami-Jackson High School every two or three weeks to mentor juniors in the Academy for International Business and Finance—also known as the Magnet Program. The mentoring sessions—which help high schoolers plan a collegiate entrance strategy—are part of the college’s Civic Engagement Initiative, coordinated by Robert Hogner, associate professor, Management and International Business Department.

On April 7, 2006, the tables were turned when nine of the mentees spent a day with these students on the university’s campus.

“At the mentoring sessions at the school, we survey students to identify their interests and have them search the Internet for details about tuition, fees, housing, required tests and test scores, and other admissions issues,” said Malcolm Vivian, graduate assistant, Civic Engagement, who revived the program. “Once we establish these basics, we help them set targets for themselves, do mock interviews, and have them fill out an application online so they can see what’s involved and review it to make sure they’ve completed it correctly.”

Luis Carranza, Mark Elbadramany, and Stephanie Moreta,
all IBHS members, at College Day

The visit to the campus gave these college hopefuls a chance to experience what the payoff for their efforts will be.

To create an agenda that would address their interests, Vivian worked with the high school’s director of the Magnet Program. Items included a presentation about financial aid and a classroom visit to the Business and Community Leadership course taught by Hogner.

“Hogner adjusted the session slightly to allow for Miami-Jackson students to interact with class members and participate in the discussion,” Vivian said.

A working lunch followed, during which the high school guests worked on a college freshman-level group international business exercise with students from the International Business Honor Society (IBHS). The interactive exercise was created by J. Randall Martin, a member of the Management and International Business Department, and led by Luis Carranza, internship coordinator in the department and an IBHS member, who also gave an introductory speech about international business, what the program in the college offers, and the importance of internships.

“The activity involved dividing the students into teams and having them answer questions,” Carranza said. “We had laptops available for them to do research on the spot. It was very dynamic, and we’ve heard that many of our visitors gained an interest in international business as a result.”

The day concluded with a tour of one of the residence halls.

“I learned a lot I didn’t know about admissions, the processing of applications, scholarships, and classes,” said Alex Alvarez. “I also enjoyed joining in the cooperative group discussion with the members of the IBHS.”