Consider an all-equity firm valued at $1 billion, and a CEO who owns $20 million in stock. Suppose the firm implemented a 90% "Leveraged Recapitalization" whereby it borrowed and simultaneously paid dividends of $900 million. The firm still has a total value of $1 billion, but the capital structure now consists of $900 million in debt, and only $100 million in equity.

1. Now, suppose he "reinvests" his dividend back into the company, buy using his cash dividend to buy shares from other shareholders at the going market rate.

Ignoring taxes and other complications,what percentage of the shares will he hold in the recapitalized company? (Provide your answer with a short explanation.)