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In this video tutorial, examples about recapitalization are provided. An example involves ABC company, which had $100 million in debt at the end of 2018. In 2019, ABC raised $20 million in new debt to buy back stocks. Before the recap, the stock price was $10 and ABC had 70 million shares outstanding. The question is how many shares ABC has after the recap. To calculate, we use the formula: (New debt - Old debt) / Prior stock price. With the given information, we calculate ABC now has 80 million shares after the recap.