I am going to assume that your N is actually M, because I see no other solution to this problem.
From the formula M1V1=M2V2, we have the the (initial molarity)(initial volume)=(final molarity)(final volume)
therefore:
to convert the .5M ethanol to .05M ethanol, you will plug it into the equation.
.5M for the initial molarity, however much volume of the .5M you have for the initial volume, .05M for the final molarity, and how much .05M you want to end up with for the final volume.
just add the V(final)-V(initial) water, and then add the initial .5M solution, mix, and you will have a .05 solution.