can you explain how did they solve this: (show full solution and formula)

You decide to sell short 200 shares of XCorp stock at a price of $75. Your margin deposit is 65 percent. Commission on the sale is 1.25%. While you are short, the stock pays a $1.75 per share dividend. Interest on margin debt is 5.25% per year.

Refer to Exhibit 4.6. Suppose at the end of one year XCorp is selling at $90 per share and you cover your short position at this price. What is your rate of return on the investment? (Assume a 1.25% commission on the purchase.) a. -40.64% b. -25.53% 5.21% d. 72.7% -71.2% C. e. ANS: A Rate of return = [75 - 90 -0.9375 - 1.125 - 1.75 - (1 -.65)(75).0525)]/(0.65)(75) + 0.9375] = -40.64%