Based on the current fianancial statements total liabilitie are 8 million and interest expensed for the coming year is 1 million. What is the cost of debt?

Assuming "liabilities" are all debt, which is usually the case, then
(1 million interest)/(8 million debt)= 12.5%

To calculate the cost of debt, you would divide the interest expense by total liabilities. In this case, the interest expense is $1 million and the total liabilities are $8 million.

Cost of Debt = (Interest Expense / Total Liabilities) x 100%

Cost of Debt = ($1 million / $8 million) x 100%

Cost of Debt = 0.125 x 100%

Cost of Debt = 12.5%

Therefore, the cost of debt for this scenario is 12.5%.