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This video tutorial discusses recapitalization using an example of ABC company. The company had $100 million in debt in 2018, raised $20 million in new debt in 2019 to buy back stocks. The stock price was $10 with 70 million shares before recap. To calculate the new share count, subtract the shares repurchased from the pre-recap shares. The formula for shares repurchased is (New Debt - Old Debt) / Prior Price. In this case, the new debt is $20 million and the old debt is $100 million.