Step 1: The degree of dissociation is given as a percentage. So \(\alpha = 0.5\% = 0.005\).
Step 2: For a weak monobasic acid \(HA \rightleftharpoons H^+ + A^-\), the dissociation constant is \(K_a = \dfrac{C\alpha^2}{1-\alpha}\), where C is the initial concentration.
Step 3: Since \(\alpha\) is very small, \(1-\alpha \approx 1\), so \(K_a \approx C\alpha^2\).
Step 4: Substitute the values: \(K_a = 0.04 \times (0.005)^2 = 0.04 \times 0.000025 = 1 \times 10^{-6}\).
\[\boxed{K_a = 10^{-6}}\]