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In this video tutorial about recapitalization, the example discussed is about the shares remaining after a purchase. ABC company reported $100 million in debt at the end of 2018. In 2019, ABC raised $20 million in new debt to buy back stocks. Before the recapitalization, the stock price was $10 and ABC had 70 million shares outstanding. The question is how many shares ABC has after the recapitalization. To calculate the new number of shares, use the formula: New Shares = Prior Shares - Repurchased Shares. The amount repurchased can be calculated by using the formula: (New Debt - Old Debt) / Prior Stock Price.