It all really depends on the author. If it's a favorite author, and the price is more than $10 for something just published, I'd accept ads for free or a significantly lower price. But if the book was $2.99, I'd probably rather just pay the $2.99 and have ads.
And ad at the end of every chapter would be too much--even for free, but at the beginning, middle and end would be acceptable.
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