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In this video tutorial, examples of recapitalization are given, starting with the case of shares remaining after a purchase. ABC company had $100 million in debt at the end of 2018. In 2019, ABC raised $20 million in new debt to buy back stocks. Before recapping, the stock price was $10 with 70 million shares outstanding. The question is, how many shares does ABC have after the recap? To calculate, we use the formula: D new - D old / P prior, where D new is the new debt raised in 2019 ($20 million), D old is the debt in 2018 ($100 million), and P prior is the number of shares before the recap (70 million). By using this formula, we can find out the number of shares ABC has after the recap.