Bull Case $78 7x 2011E EPS of $10.78 GE proposal is substantially softened and there is little impact on revenues, but growth decelerates as tailwinds abate. We forecast annual revenue growth of 2% (2009 – 2014E CAGR). Base Case $59 6x 2011E EPS of $9.72 Moderately impactful GE regs are enacted, putting some pressure on pricing and enrollment growth. New incentive compensation rules and firmer ad pricing also hinder enrollment and raise costs. Investments in career services, default management, and expansions further pressure margins. We forecast revenue decline of 2% (2009 – 2014E CAGR). Bear Case $30 3x 2011E EPS of $9.17 Strict GE regs are enacted. Separately, ESI consolidates PEAKS. Regs significantly affect ESI’s pricing. Investors reassess their valuation of ESI, considering a higher liability from PEAKS, now consolidated on the balance sheet. If consolidation is triggered by a regulatory event, we expect the P/E multiple to compress further.