<PAGE> PAGE 1
000 B000000 09/30/97
000 C000000 0000318531
000 D000000 Y
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 A
001 A000000 PRUDENTIAL SMALL COMPANY VALUE FUND, INC.
001 B000000 811-3084
001 C000000 9733677525
002 A000000 100 MULBERRY STREET
002 B000000 NEWARK
002 C000000 NJ
002 D010000 07102
002 D020000 4077
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A000001 PRUDENTIAL INVESTMENTS FUND MANAGEMENT LLC
008 B000001 A
008 C000001 801-31104
008 D010001 NEWARK
008 D020001 NJ
008 D030001 07102
008 A000002 THE PRUDENTIAL INVESTMENT CORPORATION
008 B000002 S
008 C000002 801-000000
008 D010002 NEWARK
008 D020002 NJ
008 D030002 07102
011 A000001 PRUDENTIAL SECURITIES INCORPORATED
011 B000001 8-27154
011 C010001 NEW YORK
011 C020001 NY
011 C030001 10292
012 A000001 PRUDENTIAL MUTUAL FUND SERVICES LLC
<PAGE> PAGE 2
012 B000001 84-4110019
012 C010001 NEW BRUNSWICK
012 C020001 NJ
012 C030001 08906
013 A000001 PRICE WATERHOUSE LLP
013 B010001 NEW YORK
013 B020001 NY
013 B030001 10036
014 A000001 PRUDENTIAL SECURITIES INCORPORATED
014 B000001 8-27154
014 A000002 PRUCO SECURITIES CORPORATION
014 B000002 8-16402
015 A000001 STATE STREET BANK AND TRUST COMPANY
015 B000001 C
015 C010001 NORTH QUINCY
015 C020001 MA
015 C030001 02171
015 E010001 X
015 A000002 CITIBANK, N.A.
015 B000002 S
015 C010002 BUENOS AIRES
015 D010002 ARGENTINA
015 E040002 X
015 A000003 WESTPAC BANKING CORPORATION
015 B000003 S
015 C010003 SYDNEY
015 D010003 AUSTRALIA
015 E040003 X
015 A000004 GIROCREDIT BANK AKTIENGESELLSCHAFT DER SPARKA
015 B000004 S
015 C010004 VIENNA
015 D010004 AUSTRIA
015 E040004 X
015 A000005 GENERALE BANK
015 B000005 S
015 C010005 BRUSSELS
015 D010005 BELGIUM
015 E040005 X
015 A000006 CITIBANK, N.A.
015 B000006 S
015 C010006 SAO PAULO
015 D010006 BRAZIL
015 E040006 X
015 A000007 CANADA TRUSTCO MORTGAGE COMPANY
015 B000007 S
015 C010007 TORONTO
015 D010007 CANADA
015 E040007 X
015 A000008 CITIBANK, N.A.
015 B000008 S
015 C010008 SANTIAGO
<PAGE> PAGE 3
015 D010008 CHILE
015 E040008 X
015 A000009 CESKOSLOVENSKA OBCHODNI BANKA A.S.
015 B000009 S
015 C010009 PRAGUE
015 D010009 CZECH REPUBLIC
015 E040009 X
015 A000010 DEN DANSKE BANK
015 B000010 S
015 C010010 COPENHAGEN
015 D010010 DENMARK
015 E040010 X
015 A000011 MERITA BANK LIMITED
015 B000011 S
015 C010011 HELSINKI
015 D010011 FINLAND
015 E040011 X
015 A000012 BANQUE PARIBAS
015 B000012 S
015 C010012 PARIS
015 D010012 FRANCE
015 E040012 X
015 A000013 DRESDNER BANK A.G.
015 B000013 S
015 C010013 FRANKFURT
015 D010013 GERMANY
015 E040013 X
015 A000014 STANDARD CHARTERED BANK
015 B000014 S
015 C010014 HONG KONG
015 D010014 HONG KONG
015 E040014 X
015 A000015 CITIBANK BUDAPEST RT.
015 B000015 S
015 C010015 BUDAPEST
015 D010015 HUNGARY
015 E040015 X
015 A000016 STANDARD CHARTERED BANK MALAYSIA BERHAD
015 B000016 S
015 C010016 JAKARTA
015 D010016 INDONESIA
015 E040016 X
015 A000017 BANK OF IRELAND
015 B000017 S
015 C010017 DUBLIN
015 D010017 IRELAND
015 E040017 X
015 A000018 MORGAN GUARANTY TRUST COMPANY
015 B000018 S
015 C010018 MILAN
015 D010018 ITALY
<PAGE> PAGE 4
015 E040018 X
015 A000019 SUMITOMO TRUST & BANKING CO., LTD.
015 B000019 S
015 C010019 TOKYO
015 D010019 JAPAN
015 E040019 X
015 A000020 SEOULBANK
015 B000020 S
015 C010020 SEOUL
015 D010020 KOREA
015 E040020 X
015 A000021 STANDARD CHARTERED BANK
015 B000021 S
015 C010021 KUALA LUMPUR
015 D010021 MALAYSIA
015 E040021 X
015 A000022 CITIBANK MEXICO, N.A.
015 B000022 S
015 C010022 MEXICO CITY
015 D010022 MEXICO
015 E040022 X
015 A000023 MEESPIERSON N.V.
015 B000023 S
015 C010023 AMSTERDAM
015 D010023 NETHERLANDS
015 E040023 X
015 A000024 ANZ BANKING GROUP (NEW ZEALAND) LIMITED
015 B000024 S
015 C010024 WELLINGTON
015 D010024 NEW ZEALAND
015 E040024 X
015 A000025 CHRISTIANIA BANK OG KREDITKASSE
015 B000025 S
015 C010025 OSLO
015 D010025 NORWAY
015 E040025 X
015 A000026 STANDARD CHARTERED BANK
015 B000026 S
015 C010026 MANILA
015 D010026 PHILIPPINES
015 E040026 X
015 A000027 CITIBANK POLAND, S.A.
015 B000027 S
015 C010027 WARSAW
015 D010027 POLAND
015 E040027 X
015 A000028 BANCO COMERCIAL PORTUGUES
015 B000028 S
015 C010028 LISBON
015 D010028 PORTUGAL
015 E040028 X
<PAGE> PAGE 5
015 A000029 THE DEVELOPMENT BANK OF SINGAPORE LTD.
015 B000029 S
015 C010029 SINGAPORE
015 D010029 SINAPORE
015 E040029 X
015 A000030 BANCO SANTANDER, SA
015 B000030 S
015 C010030 MADRID
015 D010030 SPAIN
015 E040030 X
015 A000031 SKANDINAVISKA ENSKILDA BANKEN
015 B000031 S
015 C010031 STOCKHOLM
015 D010031 SWEDEN
015 E040031 X
015 A000032 UNION BANK OF SWITZERLAND
015 B000032 S
015 C010032 ZURICH
015 D010032 SWITZERLAND
015 E040032 X
015 A000033 STANDARD CHARTERED BANK
015 B000033 S
015 C010033 BANGKOK
015 D010033 THAILAND
015 E040033 X
015 A000034 CITIBANK, N.A.
015 B000034 S
015 C010034 ISTANBUL
015 D010034 TURKEY
015 E040034 X
015 A000035 STATE STREET LONDON
015 B000035 S
015 C010035 LONDON
015 D010035 UNITED KINGDOM
015 E040035 X
015 A000036 THE HONGKONG AND SHANGHAI BANKING CORP.
015 B000036 S
015 C010036 SHANGHAI
015 D010036 CHINA
015 E040036 X
015 A000037 CITITRUST COLUMBIA S.A.
015 B000037 S
015 C010037 BOGATA
015 D010037 COLUMBIA
015 E040037 X
015 A000038 NATIONAL BANK OF GREECE S.A.
015 B000038 S
015 C010038 ATHENS
015 D010038 GREECE
015 E040038 X
015 A000039 BANK HAPOALIM B.M.
<PAGE> PAGE 6
015 B000039 S
015 C010039 TEL AVIV
015 D010039 ISRAEL
015 E040039 X
015 A000040 DEUTSCHE BANK AG
015 B000040 S
015 C010040 ISLAMABAD
015 D010040 PAKISTAN
015 E040040 X
015 A000041 CITIBANK, N.A.
015 B000041 S
015 C010041 LIMA
015 D010041 PERU
015 E040041 X
015 A000042 CEKOSLOVENSKA OBCHODNA BANKA A.S.
015 B000042 S
015 C010042 PRAGUE
015 D010042 SLOVAK REPUBLIC
015 E040042 X
015 A000043 STANDARD BANK OF SOUTH AFRICA LTD.
015 B000043 S
015 C010043 JOHANNESBURG
015 D010043 SOUTH AFRICA
015 E040043 X
015 A000044 CENTRAL TRUST OF CHINA
015 B000044 S
015 C010044 TAIPEI
015 D010044 TAIWAN
015 E040044 X
015 A000045 CITIBANK, N.A.
015 B000045 S
015 C010045 MONTEVIDEO
015 D010045 URUGUAY
015 E040045 X
015 A000046 CITIBANK, N.A.
015 B000046 S
015 C010046 CARACAS
015 D010046 VENEZUELA
015 E040046 X
015 A000047 CEDEL
015 B000047 S
015 C010047 LUXEMBOURG
015 D010047 LUXEMBOURG
015 E040047 X
015 A000048 DEUTSCHE BANK A.G.
015 B000048 S
015 C010048 BOMBAY
015 D010048 INDIA
015 E040048 X
015 A000049 THE DAIWA BANK, LTD
015 B000049 S
<PAGE> PAGE 7
015 C010049 TOKYO
015 D010049 JAPAN
015 E040049 X
015 A000050 THE EUROCLEAR SYSTEM
015 B000050 S
015 C010050 TRANSNATIONAL
015 D010050 CEDEL
015 E040050 X
018 000000 Y
019 A000000 Y
019 B000000 90
019 C000000 PRUDENTIAL
020 A000001 INSTINET CORPORATION
020 B000001 13-3443395
020 C000001 246
020 A000002 BEAR, STEARNS & CO., INC.
020 B000002 13-5108880
020 C000002 141
020 A000003 WEEDEN & CO., L.P.
020 B000003 13-3364318
020 C000003 123
020 A000004 DONALDSON, LUFKIN & JENRETTE SECURITIES INC.
020 B000004 13-2741729
020 C000004 102
020 A000005 INVESTMENT TECHNOLOGY GROUP, INC.
020 B000005 0000000000
020 C000005 69
020 A000006 CREDIT SUISSE FIRST BOSTON CORP.
020 B000006 13-5659485
020 C000006 60
020 A000007 SMITH BARNEY, INC.
020 B000007 13-1912900
020 C000007 39
020 A000008 MERRILL LYNCH, PIERCE, FENNER & SMITH INC.
020 B000008 13-5674085
020 C000008 39
020 A000009 NEUBERGER & BERMAN, LLC
020 B000009 13-5521910
020 C000009 38
020 A000010 JEFFERIES & COMPANY, INC.
020 B000010 0000000000
020 C000010 37
021 000000 1595
022 A000001 BEAR, STEARNS & CO., INC.
022 B000001 13-3299429
022 C000001 5738363
022 D000001 2696
022 A000002 MORGAN (J.P.) SECURITIES, INC.
022 B000002 13-3224016
022 C000002 3372895
022 D000002 0
<PAGE> PAGE 8
022 A000003 GOLDMAN, SACHS & CO.
022 B000003 13-5108880
022 C000003 3086751
022 D000003 2212
022 A000004 SBC WARBURG DILLON READ, INC.
022 B000004 0000000000
022 C000004 2726351
022 D000004 0
022 A000005 CREDIT SUISSE FIRST BOSTON CORP.
022 B000005 13-5659485
022 C000005 2623249
022 D000005 2897
022 A000006 SMITH BARNEY, INC.
022 B000006 13-1912900
022 C000006 2213722
022 D000006 2507
022 A000007 DEUTSHE BANK SECURITIES CORP.
022 B000007 0000000000
022 C000007 1383251
022 D000007 0
022 A000008 UBS SECURITIES, LLC
022 B000008 13-3873456
022 C000008 374132
022 D000008 290
022 A000009 MORGAN STANLEY, DEAN WITTER, DISCOVER & CO.
022 B000009 13-2655998
022 C000009 252414
022 D000009 1140
022 A000010 BANKERS TRUST, INC.
022 B000010 13-4941247
022 C000010 136831
022 D000010 0
023 C000000 22487575
023 D000000 51158
024 000000 Y
025 A000001 CREDIT SUISSE FIRST BOSTON CORP.
025 B000001 13-5659485
025 C000001 D
025 D000001 30340
025 A000002 GOLDMAN, SACHS & CO., INC.
025 B000002 13-5108880
025 C000002 D
025 D000002 30340
025 A000003 MORGAN STANLEY, DEAN WITTER, DISCOVER & CO.
025 B000003 13-2655998
025 C000003 D
025 D000003 28939
025 A000004 UBS SECURITIES, LLC
025 B000004 13-1912900
025 C000004 D
025 D000004 30340
<PAGE> PAGE 9
025 D000005 0
025 D000006 0
025 D000007 0
025 D000008 0
026 A000000 N
026 B000000 N
026 C000000 N
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
028 A010000 129418
028 A020000 0
028 A030000 0
028 A040000 109307
028 B010000 163709
028 B020000 0
028 B030000 0
028 B040000 125200
028 C010000 133244
028 C020000 0
028 C030000 0
028 C040000 112439
028 D010000 150888
028 D020000 0
028 D030000 0
028 D040000 112547
028 E010000 178311
028 E020000 0
028 E030000 0
028 E040000 163995
028 F010000 174114
028 F020000 0
028 F030000 0
028 F040000 88687
028 G010000 929684
028 G020000 0
028 G030000 0
028 G040000 712175
028 H000000 489631
029 000000 Y
030 A000000 1019
030 B000000 5.00
030 C000000 0.00
031 A000000 13
031 B000000 0
032 000000 0
033 000000 1006
<PAGE> PAGE 10
034 000000 Y
035 000000 701
036 A000000 N
036 B000000 0
037 000000 N
038 000000 0
039 000000 N
040 000000 Y
041 000000 Y
042 A000000 0
042 B000000 0
042 C000000 0
042 D000000 100
042 E000000 0
042 F000000 0
042 G000000 0
042 H000000 0
043 000000 5245
044 000000 0
045 000000 Y
046 000000 N
047 000000 Y
048 000000 0.700
048 A010000 0
048 A020000 0.000
048 B010000 0
048 B020000 0.000
048 C010000 0
048 C020000 0.000
048 D010000 0
048 D020000 0.000
048 E010000 0
048 E020000 0.000
048 F010000 0
048 F020000 0.000
048 G010000 0
048 G020000 0.000
048 H010000 0
048 H020000 0.000
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
048 K010000 0
048 K020000 0.000
049 000000 N
050 000000 N
051 000000 N
052 000000 N
053 A000000 N
054 A000000 Y
<PAGE> PAGE 11
054 B000000 Y
054 C000000 N
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 N
054 H000000 Y
054 I000000 N
054 J000000 Y
054 K000000 N
054 L000000 N
054 M000000 N
054 N000000 N
054 O000000 N
055 A000000 N
055 B000000 N
056 000000 N
057 000000 N
058 A000000 N
059 000000 Y
060 A000000 Y
060 B000000 Y
061 000000 1000
062 A000000 N
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 0.0
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 0.0
062 N000000 0.0
062 O000000 0.0
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
063 A000000 0
063 B000000 0.0
066 A000000 Y
066 C000000 Y
067 000000 N
068 A000000 N
068 B000000 N
069 000000 N
070 A010000 Y
070 A020000 Y
<PAGE> PAGE 12
070 B010000 Y
070 B020000 N
070 C010000 N
070 C020000 N
070 D010000 Y
070 D020000 N
070 E010000 N
070 E020000 N
070 F010000 Y
070 F020000 N
070 G010000 N
070 G020000 N
070 H010000 N
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 Y
070 J020000 N
070 K010000 N
070 K020000 N
070 L010000 Y
070 L020000 Y
070 M010000 N
070 M020000 N
070 N010000 N
070 N020000 N
070 O010000 Y
070 O020000 N
070 P010000 Y
070 P020000 Y
070 Q010000 N
070 Q020000 N
070 R010000 N
070 R020000 N
071 A000000 600770
071 B000000 436068
071 C000000 756953
071 D000000 58
072 A000000 12
072 B000000 5058
072 C000000 6294
072 D000000 0
072 E000000 0
072 F000000 0
072 G000000 5864
072 H000000 0
072 I000000 1358
072 J000000 177
072 K000000 0
072 L000000 360
072 M000000 23
<PAGE> PAGE 13
072 N000000 190
072 O000000 0
072 P000000 0
072 Q000000 0
072 R000000 25
072 S000000 23
072 T000000 5245
072 U000000 0
072 V000000 0
072 W000000 2
072 X000000 13267
072 Y000000 0
072 Z000000 -1915
072AA000000 151186
072BB000000 12931
072CC010000 201445
072CC020000 0
072DD010000 0
072DD020000 0
072EE000000 109833
073 A010000 0.0000
073 A020000 0.0000
073 B000000 2.4250
073 C000000 0.0000
074 A000000 1333
074 B000000 119958
074 C000000 0
074 D000000 4073
074 E000000 4851
074 F000000 1097731
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 7552
074 K000000 0
074 L000000 16613
074 M000000 19
074 N000000 1252130
074 O000000 8712
074 P000000 1261
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 10334
074 S000000 0
074 T000000 1231823
074 U010000 36603
074 U020000 30987
074 V010000 0.00
074 V020000 0.00
<PAGE> PAGE 14
074 W000000 0.0000
074 X000000 124388
074 Y000000 0
075 A000000 0
075 B000000 837727
076 000000 0.00
077 A000000 Y
077 B000000 Y
077 C000000 N
077 D000000 Y
077 E000000 N
077 F000000 N
077 G000000 N
077 H000000 N
077 I000000 N
077 J000000 Y
077 K000000 N
077 M000000 N
077 N000000 N
077 O000000 Y
077 P000000 N
077 Q010000 Y
077 Q020000 N
077 Q030000 N
078 000000 N
080 A000000 ICI MUTAL INSURANCE CO.
080 B000000 N/A
080 C000000 65000
081 A000000 Y
081 B000000 75
082 A000000 N
082 B000000 0
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 Y
085 B000000 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
<PAGE> PAGE 15
SIGNATURE GRACE TORRES
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000318531
<NAME> PRUDENTIAL SMALL COMPANIES FUND, INC.
<SERIES>
<NUMBER> 001
<NAME> SMALL COMPANIES FUND (CLASS A)
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> MAR-31-1997
<INVESTMENTS-AT-COST> 633,584,292
<INVESTMENTS-AT-VALUE> 748,040,242
<RECEIVABLES> 6,476,903
<ASSETS-OTHER> 13,097
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 0
<PAYABLE-FOR-SECURITIES> 2,577,993
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 9,600,077
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 588,457,197
<SHARES-COMMON-STOCK> 54,018,222
<SHARES-COMMON-PRIOR> 46,432,221
<ACCUMULATED-NII-CURRENT> (557,672)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 39,996,697
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 114,455,950
<NET-ASSETS> (100,450,443)
<DIVIDEND-INCOME> 2,935,503
<INTEREST-INCOME> 2,302,082
<OTHER-INCOME> 0
<EXPENSES-NET> 5,795,257
<NET-INVESTMENT-INCOME> (557,672)
<REALIZED-GAINS-CURRENT> 56,544,205
<APPREC-INCREASE-CURRENT> 9,838,391
<NET-CHANGE-FROM-OPS> 65,824,924
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (109,832,530)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 579,038,572
<NUMBER-OF-SHARES-REDEEMED> (587,079,951)
<SHARES-REINVESTED> 105,395,777
<NET-CHANGE-IN-ASSETS> 53,346,792
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 93,285,022
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2,553,507
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 5,795,257
<AVERAGE-NET-ASSETS> 251,937,000
<PER-SHARE-NAV-BEGIN> 15.30
<PER-SHARE-NII> 1.39
<PER-SHARE-GAIN-APPREC> 0.00
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> (2.43)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 14.26
<EXPENSE-RATIO> 1.20
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000318531
<NAME> PRUDENTIAL SMALL COMPANIES FUND, INC.
<SERIES>
<NUMBER> 002
<NAME> SMALL COMPANIES FUND (CLASS B)
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> MAR-31-1997
<INVESTMENTS-AT-COST> 633,584,292
<INVESTMENTS-AT-VALUE> 748,040,242
<RECEIVABLES> 6,476,903
<ASSETS-OTHER> 13,097
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 0
<PAYABLE-FOR-SECURITIES> 2,577,993
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 9,600,077
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 588,457,197
<SHARES-COMMON-STOCK> 54,018,222
<SHARES-COMMON-PRIOR> 46,432,221
<ACCUMULATED-NII-CURRENT> (557,672)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 39,996,697
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 114,455,950
<NET-ASSETS> (100,450,443)
<DIVIDEND-INCOME> 2,935,503
<INTEREST-INCOME> 2,302,082
<OTHER-INCOME> 0
<EXPENSES-NET> 5,795,257
<NET-INVESTMENT-INCOME> (557,672)
<REALIZED-GAINS-CURRENT> 56,544,205
<APPREC-INCREASE-CURRENT> 9,838,391
<NET-CHANGE-FROM-OPS> 65,824,924
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (109,832,530)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 579,038,572
<NUMBER-OF-SHARES-REDEEMED> (587,079,951)
<SHARES-REINVESTED> 105,395,777
<NET-CHANGE-IN-ASSETS> 53,346,792
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 93,285,022
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2,553,507
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 5,795,257
<AVERAGE-NET-ASSETS> 395,416,000
<PER-SHARE-NAV-BEGIN> 14.49
<PER-SHARE-NII> 1.26
<PER-SHARE-GAIN-APPREC> 0.00
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> (2.43)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 13.32
<EXPENSE-RATIO> 1.95
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000318531
<NAME> PRUDENTIAL SMALL COMPANIES FUND, INC.
<SERIES>
<NUMBER> 003
<NAME> SMALL COMPANIES FUND (CLASS C)
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> MAR-31-1997
<INVESTMENTS-AT-COST> 633,584,292
<INVESTMENTS-AT-VALUE> 748,040,242
<RECEIVABLES> 6,476,903
<ASSETS-OTHER> 13,097
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 0
<PAYABLE-FOR-SECURITIES> 2,577,993
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 9,600,077
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 588,457,197
<SHARES-COMMON-STOCK> 54,018,222
<SHARES-COMMON-PRIOR> 46,432,221
<ACCUMULATED-NII-CURRENT> (557,672)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 39,996,697
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 114,455,950
<NET-ASSETS> (100,450,443)
<DIVIDEND-INCOME> 2,935,503
<INTEREST-INCOME> 2,302,082
<OTHER-INCOME> 0
<EXPENSES-NET> 5,795,257
<NET-INVESTMENT-INCOME> (557,672)
<REALIZED-GAINS-CURRENT> 56,544,205
<APPREC-INCREASE-CURRENT> 9,838,391
<NET-CHANGE-FROM-OPS> 65,824,924
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (109,832,530)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 579,038,572
<NUMBER-OF-SHARES-REDEEMED> (587,079,951)
<SHARES-REINVESTED> 105,395,777
<NET-CHANGE-IN-ASSETS> 53,346,792
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 93,285,022
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2,553,507
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 5,795,257
<AVERAGE-NET-ASSETS> 5,370,000
<PER-SHARE-NAV-BEGIN> 14.49
<PER-SHARE-NII> 1.26
<PER-SHARE-GAIN-APPREC> 0.00
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> (2.43)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 13.32
<EXPENSE-RATIO> 1.95
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000318531
<NAME> PRUDENTIAL SMALL COMPANIES FUND, INC.
<SERIES>
<NUMBER> 004
<NAME> SMALL COMPANIES FUND (CLASS Z)
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> MAR-31-1997
<INVESTMENTS-AT-COST> 633,584,292
<INVESTMENTS-AT-VALUE> 748,040,242
<RECEIVABLES> 6,476,903
<ASSETS-OTHER> 13,097
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 0
<PAYABLE-FOR-SECURITIES> 2,577,993
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 9,600,077
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 588,457,197
<SHARES-COMMON-STOCK> 54,018,222
<SHARES-COMMON-PRIOR> 46,432,221
<ACCUMULATED-NII-CURRENT> (557,672)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 39,996,697
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 114,455,950
<NET-ASSETS> (100,450,443)
<DIVIDEND-INCOME> 2,935,503
<INTEREST-INCOME> 2,302,082
<OTHER-INCOME> 0
<EXPENSES-NET> 5,795,257
<NET-INVESTMENT-INCOME> (557,672)
<REALIZED-GAINS-CURRENT> 56,544,205
<APPREC-INCREASE-CURRENT> 9,838,391
<NET-CHANGE-FROM-OPS> 65,824,924
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (109,832,530)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 579,038,572
<NUMBER-OF-SHARES-REDEEMED> (587,079,951)
<SHARES-REINVESTED> 105,395,777
<NET-CHANGE-IN-ASSETS> 53,346,792
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 93,285,022
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2,553,507
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 5,795,257
<AVERAGE-NET-ASSETS> 78,854,000
<PER-SHARE-NAV-BEGIN> 15.32
<PER-SHARE-NII> 1.41
<PER-SHARE-GAIN-APPREC> 0.00
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> (2.43)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 14.30
<EXPENSE-RATIO> 0.95
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
T:\flh\SmallCo\10f-3.9-97
For the annual period ended 9/30/97
File number 811-3084
SUB-ITEM 77 0
EXHIBITS
Transactions Effected Pursuant to Rule 10f-3
I.
1. Name of Issuer
Everen Securities
2. Date of Purchase
10/07/96
3. Number of Securities Purchased
143,000
4. Dollar Amount of Purchase
$2,645,500
5. Price Per Unit
$18.50
6. Name(s) of Underwriter(s) or
Dealer(s)
From whom Purchased:
Morgan Stanley
7. Other Members of the
Underwriting Syndicate:
Alex, Brown & Sons
Incorporated
CS First Boston Corporation
Goldman Sachs & Co.
Morgan Stanley & Co.Inc
Bear Stearns& Co. Inc.
Lehman Brothers Inc.
Salomon Brothers Inc.
Smith Barney Inc.
Dean Witter Reynolds Inc.
Donaldson, Lufkin & Jenrette
Securities Corporation
Cowen & Company
Hambrecht & Quist LLC
Lazard Freres & Co. LLC
Schroeder Wertheim & Co. Inc.
Dillion Reed & Co. Inc.
A.G. Edwards & Sons, Inc.
Friedman, Billings, Ramsey &
Co., Inc.
Everen Securities, Inc.
Adams, Harkness & Hill, Inc.
Advest, Inc.
Robert W. Baird & Co., Inc.
William Blair Company, LLC
The Boston Group, LP
J.C. Bradford & Co.
The Chicago Corporation
Cleary Gull Reiland &
McDevitt, Inc.
Crowell, Weedon & Co.
Dain Bosworth Incorporated
Deutsche Morgan Grenfell/
C.J. Lawrence, Inc.
Equitable Securities
Corporation
Fahnestock & Co., Inc.
Furman Selz LLC
GS2 Securities, Inc.
Goldman, Sachs & Co.
Hanifen Imhoff, Inc.
Howe Barnes Investments, Inc.
Janney Montgomery Scott, Inc.
Jeffries & Company, Inc.
John G. Kinnard and Company,
Inc.
Ladenburg, Thalmann & Co.,
Inc.
Legg Mason Wood Walker,
Incorporated
McDonald & Company
Securities, Inc.
II.
1. Name of Issuer
Titan Exploration
2. Date of Purchase
12/16/96
3. Number of Securities Purchased
47,800
4. Dollar Amount of Purchase
$525,800
5. Price Per Unit
$11.00
6. Name(s) of Underwriter(s) or
Dealer(s)
From whom Purchased:
CS First Boston
7. Other Members of the
Underwriting Syndicate:
Donaldson, Lufkin & Jenrette
Securities Corporation
Howard, Weil, Labouisse,
Friedrichs Incorporated
J.P. Morgan Securities, Inc.
Petrie Parkman & Co., Inc.
III.
1. Name of Issuer
CTB International
2. Date of Purchase
8/21/97
3. Number of Securities Purchased
139,000
4. Dollar Amount of Purchase
$1,946,000
5. Price Per Unit
$14
6. Name(s) of Underwriter(s) or
Dealer(s)
From whom Purchased:
Donaldson, Lufkin & Jenrette
George K. Baum & Company
Chase Securities Inc.
7. Other Members of the
Underwriting Syndicate:
Donaldson, Lufkin & Jenrette
Securities Corporation
George K. Baum & Company
Chase Securities Inc.
Alex Brown & Sons Incorporated
Credit Suisse First Boston
Corporation
A.G. Edwards & Sons, Inc.
Furman Selz LLC
Lehman Brothers Inc.
Merrill Lynch, Pierce, Fenner
& Smith Incorporated
J.P. Morgan Securities Inc.
Oppenheimer & Co., Inc.
PaineWebber Incorporated
Prudential Securities
Incorporated
Salomon Brothers Inc.
Smith Barney Inc.
Robert W. Baird & Co.
Incorporated
Sanford C. Bernstein & Co.,
Inc.
Dain Bosworth Incorporated
EVEREN Securities, Inc.
Gabelli & Company, Inc.
GS2 Securities, Inc.
Natcity Investments, Inc.
Piper Jaffray Inc.
Roney & Co.
Scott & Stringfellow, Inc.
T:\flh\smallco\n-sar77d
For the year ended September 30, 1997
File number 811-3084
SUB-ITEM 77D
Changes With Respect to Security
Investment
I. At its May 21, 1997 meeting the Board of Directors
authorized a change in the definition of the maximum market
capitalization of a small capitalization stock from $1
billion to $1.5 billion and also changed the name of the
Fund to Prudential Small Company Value Fund, Inc..
November 19, 1997
To the Shareholders and Board of
Directors of
Prudential Small Company Value Fund,
Inc.
In planning and performing our audit of
the financial statements of Prudential
Small Company Value Fund, Inc. (the "
Fund") for the year ended September 30,
1997, we considered its internal
control, including control activities
for safeguarding securities, in order to
determine our auditing procedures for
the purpose of expressing our opinion on
the financial statements and to comply
with the requirements of Form N-SAR, not
to provide assurance on internal
control.
The management of the Fund is
responsible for establishing and
maintaining internal control. In
fulfilling this responsibility,
estimates and judgments by management
are required to assess the expected
benefits and related costs of control
activities. Generally, control
activities that are relevant to an audit
pertain to the entity's objective of
preparing financial statements for
external purposes that are fairly
presented in conformity with generally
accepted accounting principles. Those
control activities include the
safeguarding of assets against
unauthorized acquisition, use or
disposition.
Because of inherent limitations in
internal control, errors or
irregularities may occur and not be
detected. Also, projection of any
evaluation of internal control to future
periods is subject to the risk that it
may become inadequate because of changes
in conditions or that the effectiveness
of the design and operation may
deteriorate.
Our consideration of internal control
would not necessarily disclose all
matters in internal control that might
be material weaknesses under standards
established by the American Institute of
Certified Public Accountants. A
material weakness is a condition in
which the design or operation of any
specific internal control components
does not reduce to a relatively low
level the risk that errors or
irregularities in amounts that would be
material in relation to the financial
statements being audited may occur and
not be detected within a timely period
by employees in the normal course of
performing their assigned functions.
However, we noted no matters involving
internal control, including control
activities for safeguarding securities,
that we consider to be material
weaknesses as defined above as of
September 30, 1997.
This report is intended solely for the
information and use of management and
the Board of Directors of the Fund and
the Securities and Exchange Commission.
For the year ended (a) September 30, 1997
File number (c) 811-3084
SUB-ITEM 77J
Restatement of Capital Share Account
The Fund accounts and reports for
distributions to shareholders in
accordance with the
American Institute of Certified Public
Accountants' Statement of Position 93-2:
Determination,
Disclosure, and Financial Statement
Presentation of Income, Capital Gain,
and Return Capital
Distributions by Investment Companies. The
effect of applying this statement was to
increase
undistributed net investment income and
decrease accumulated net realized gain
on investments
by $1,914,727 for net operating losses
during the fiscal year ended September
30, 1997. Net
investment income, net realized gains and
net assets were not affected by this
change.
- 2 -
Board of Directors or Trustees of:
Prudential Adjustable Rate Prudential High Yield
Securities Fund* Fund
Prudential Allocation Fund (2 Prudential
Portfolios) IncomeVertible Fund*
The BlackRock Government Income Prudential
Trust Intermediate Global
Global Utility Fund Income Fund
Nicholas-Applegate Fund Prudential Jennison
Prudential California Municipal Fund
Fund (2 Portfolios) Prudential MoneyMart
Prudential Distressed Assets
Securities Fund Prudential Mortgage
Prudential Diversified Bond Income Fund
Fund Prudential Multi-
Prudential Equity Fund Sector Fund
Prudential Equity Income Fund Prudential Municipal
Prudential Global Genesis Fund Bond Fund (3
Prudential Global Limited Portfolios)
Maturity Fund Prudential Municipal
Prudential Global Natural Series Fund (10
Resources Fund current
The Global Government Plus Fund Portfolios and 3
The Global Total merged Portfolios*)
Return Fund Prudential National
Prudential Government Municipals Fund
Income Fund Prudential Pacific
Prudential Government Growth Fund
Securities Trust - Prudential Small
Money Companies Fund
Market Series Prudential Structured
Maturity Fund
Prudential U.S.
Government Fund*
Prudential Utility
Fund
Prudential World Fund
* As of June 30, 1996, the Fund/Portfolio was no longer in operation.
The Fund/Portfolio merged into
another Fund within the Prudential Mutual Fund Family.
We have examined the accompanying description of the Prudential
Multiple Class Pricing Worksheet (the "Worksheet") application of
State Street Bank and Trust Company ("State Street"), custodian and
recordkeeper for the Prudential Mutual Funds (the "Funds"). Our
examination included procedures to obtain reasonable assurance about
whether (1) the accompanying description presents fairly, in all
material respects, the aspects of State Street's policies and
procedures that may be relevant to a Fund's internal control structure
relating to the Worksheet, (2) the control structure policies and
procedures included in the description were suitably designed to
achieve the control objectives specified in the description, if those
policies and procedures were complied with satisfactorily, and (3)
such policies and procedures had been placed in operation as of
June 30, 1996. The control objectives were specified by Prudential
Mutual Fund Management, Inc. Our examination was performed in
accordance with standards established by the American Institute of
Certified Public Accountants and included those procedures we
considered necessary in the circumstances to obtain a reasonable basis
for rendering our opinion.
In our opinion, the accompanying description of the aforementioned
application presents fairly, in all material respects, the relevant
aspects of State Street's policies and procedures that had been placed
in operation as of June 30, 1996. Also, in our opinion, the policies
and procedures, as described, are suitably designed to provide
reasonable assurance that the specified control objectives would be
achieved if the described policies and procedures were complied with
satisfactorily.
In addition to the procedures we considered necessary to render our
opinion as expressed in the previous paragraph, we applied tests to
specific policies and procedures, listed in Section I, to obtain
evidence about their effectiveness in meeting the control objectives,
described in Section I during the period from July 1, 1995 to June 30,
1996. The nature, timing, extent, and results of the tests are listed
in Section II. In our opinion the policies and procedures that were
tested, as described in Section II, were operating with sufficient
effectiveness to provide reasonable, but not absolute, assurance that
the control objectives specified in Section I were achieved during the
period from July 1, 1995 to June 30, 1996. However, the scope of our
engagement did not include tests to determine whether control
objectives not listed in Section I were achieved; accordingly we
express no opinion on the achievement of control objectives not
included in Section I.
The relative effectiveness and significance of specific policies and
procedures at State Street, and their effect on assessments of control
risk on the Funds are dependent on their interaction with the
policies, procedures, and other factors present at individual Funds.
We have performed no procedures to evaluate the effectiveness of
policies and procedures at individual Funds in connection with this
report.
The description of policies and procedures at State Street is as of
June 30, 1996, and information about tests of the operating
effectiveness of specified policies and procedures covers the period
from July 1, 1995 to June 30, 1996. Any projection of such
information to the future is subject to the risk that, because of
change, the description may no longer portray the system in existence.
The potential effectiveness of specified policies and procedures at
State Street is subject to inherent limitations and, accordingly,
errors or irregularities may occur and not be detected. Furthermore,
the projection of any conclusions, based on our findings, to future
periods is subject to the risk that changes may alter the validity of
such conclusions.
This report is intended solely for use by the management and Boards of
Directors/Trustees of the Funds, the independent auditors of the Funds
and the Securities and Exchange Commission.
August 23, 1996
SECTION I
Policies and Procedures Placed in Operation
Prudential Multiple Class Pricing Worksheet
The Prudential Mutual Funds (the "Funds") have adopted a multiple
class pricing system. The multiple class pricing system consists of
four classes of shares (Class A, Class B, Class C and Class Z). Class
A shares are subject to an initial sales charge, Class B and Class C
shares are subject to a contingent deferred sales charge and Class Z
shares have no sales charge (Class Z shares which were first offered
on March 1, 1996, are offered exclusively for sale to the PSI Pension
Plan). Each of the classes of shares represent interests in the same
portfolio of investments of the respective Fund and are identical in
all respects, except that each class is subject to different
distribution expenses and has exclusive voting rights with respect to
the Rule 12b-1 distribution plan pursuant to which such distribution
expenses are paid.
In order to allocate income and expenses among the classes of shares,
State Street Bank and Trust Company (the Funds' custodian and
recordkeeper) utilizes the Prudential Multiple Class Pricing Worksheet
(the "Worksheet") (see Exhibit I). The Worksheet is a manual
supplementary application that extracts relevant data from the Funds'
primary accounting system, allocates income and expenses among the
classes of shares and computes the daily net asset value and, if
applicable, the dividend/distribution for each class of shares.
Internal accounting controls that are relevant to the Fund can be
divided into two components - controls related to the mutual fund
accounting system resident at State Street Bank and Trust Company (the
"primary accounting system") and controls related to the Worksheet.
The specific control objectives and policies and procedures relating
to the Worksheet are described on pages 4 and 5. A description of the
tests of the policies and procedures designed to obtain evidence about
the operating effectiveness of those policies and procedures in
achieving the specific control objectives is included in Section II.
Control Objectives and Policies and Procedures
Prudential Multiple Class Pricing Worksheet
The Worksheet is a supplementary manual application to the Funds'
primary accounting system. Certain data is extracted from the primary
accounting system to allocate income and expenses and to calculate the
daily net asset value and, if applicable, dividends/distributions for
each class of shares. The primary accounting system includes the
details of transactions in accordance with the Investment Company Act
of 1940, as amended.
The following represents the internal accounting control objectives
and policies and procedures for the allocation of income and expenses
and the computation of the net asset value and, if applicable, the
dividend/distribution for each class of shares utilizing the
Worksheet. It does not cover the internal accounting control policies
and procedures surrounding the processing of information into the
Funds' primary accounting system.
CONTROL POLICIES
CONTROL OBJECTIVES AND PROCEDURES
A. Capital share activity as 1. Daily, the transfer
reported by the Fund's transfer agent forwards
agent is recorded for each class reports of capital
in an accurate and timely manner share activity for
by the Fund. each class which
includes a summary
of subscriptions,
redemptions,
exchanges and other
information (the
"Supersheet"). The
opening day's
balance for shares
outstanding and
current day activity
is recorded on the
Worksheet.
2. Estimated interim
share activity for
the current day not
recorded in the
Supersheet is
received via telefax
from the transfer
agent and is
recorded for each
class on the
Worksheet.
3. A report of
outstanding shares
eligible for
dividends is
received from the
transfer agent and
is recorded for each
class on the
Worksheet.
B. Net Asset Value ("NAV") and, if 1. The prior days
applicable, the ending NAV per
dividend/distribution for each share (b) for each
class are accurately computed on class is agreed to
a daily basis. the prior day's
Worksheet.
2. The daily net
capital stock
activity for each
class for the
current day is
agreed to the
Supersheet as
described in
Control Procedures
A.1., 2. and 3.,
above.
3. Percentage Assets
by Class and
Percentage Dividend
Assets by Class are
calculated for each
class based upon
information from
the prior day
Worksheet, the
Supersheet and the
telefax from the
transfer agent.
CONTROL POLICIES
CONTROL OBJECTIVES AND PROCEDURES
4. Allocate investment
income among
classes based on
the appropriate
asset allocation
percentage for each
class.
5. Agree composite
income accounts,
management fees,
other expenses,
realized gains and
losses, and
unrealized
appreciation/deprec
iation to the
primary accounting
system of the Fund.
6. Allocate expenses
among classes as
follows:
a. Expenses
directly
attributable to
each class (12b-
1 distribution
expenses) are
calculated and
recorded to that
class.
b. Expenses
attributable to
both classes are
allocated in
accordance with
the appropriate
asset allocation
percentage for
each class.
7. Allocate realized
and unrealized
gains and losses
among the classes
in accordance with
the appropriate
asset allocation
percentage of each
class.
8. Record
dividends/distribut
ions to
shareholders of
each class in the
primary accounting
system.
9. Aggregate the net
assets for each
class and agree to
the total net
assets per the
primary accounting
system.
10.For each class,
reconcile the
current day's NAV
and, if applicable,
the
dividend/distributi
on to the previous
day's NAV and
dividend/
distribution for
each class.
11.The above
procedures are
reviewed by the
Fund supervisor or
manager.
SECTION II
Tests of Operating Effectiveness
Prudential Multiple Class Pricing Worksheet
July 1, 1995 to June 30, 1996
We reviewed the methodology and procedures for calculating the daily
net asset value and, if applicable, the dividends/distributions of the
classes of shares and the allocation of income and expenses among the
classes of shares.
The following are the detailed procedures which we performed with
respect to the Worksheet. These procedures were performed for
selected days encompassing all Funds subject to multiple class pricing
during the year ended June 30, 1996, which we believe is a
representative sample, to test compliance with the control policies
and procedures as described in Section I.
Prudential Mutual Fund Management, Inc. is the manager of the Funds
and has represented to us that adequate facilities are in place to
ensure implementation of the methodology and procedures for
calculating the net asset value and dividends/distributions of the
classes of shares and the allocation of income and expenses among the
classes of shares. Based on our review of the description of the
policies and procedures of the Worksheet, as described in Section I,
and performance of tests of operating effectiveness as described in
Section II, we concur with such representation.
Agreed "Prior Day NAV Per Share" to the previous day's Worksheet.
Agreed "Shares Outstanding Beginning of the Day" to the previous
day's Worksheet and to the transfer agency records for each class.
Recalculated "Activity/Estimate" by adding the estimated interim
share activity reported via fax from the transfer agent and the
current day's "Capital Stock Activity" reported on the Supersheet
for each class.
Recalculated "Current Shares Outstanding" by adding "Shares
Outstanding Beginning of the Day" and "Activity/Estimate" for each
class.
Recalculated for each class "Adjusted Total Assets" by multiplying
"Prior Day NAV Per Share" by "Current Shares Outstanding".
Recalculated "Percentage Assets-Class A/Front End" by dividing
"Adjusted Total Assets-Class A/Front End" by "Adjusted Total
Assets Composite".
Recalculated "Percentage Assets-Class B(C)/Back End" by dividing
"Adjusted Total Assets-Class B(C)/Back End" by "Adjusted Total
Assets Composite".
Recalculated "Percentage Assets-Class Z/No Fee" where applicable,
by dividing "Adjusted Total Assets-Class Z/No Fee" by "Adjusted
Total Assets Composite".
Agreed "Dividend Shares" to the transfer agency records for each
class.
Recalculated "Current Dividend Shares" by adding "Dividend Shares
Beginning of Day" and "Activity/Estimate" for each class.
Recalculated for each class "Adjusted Dividend Assets" by
multiplying "Prior Day NAV Per Share" by "Current Dividend
Shares".
Recalculated "Percentage Dividend Assets-Class A/Front End" by
dividing "Adjusted Dividend Assets-Class A/Front End" by "Adjusted
Dividend Assets Composite".
Recalculated "Percentage Dividend Assets-Class B(C)/Back End" by
dividing "Adjusted Dividend Assets-Class B(C)/Back End" by
"Adjusted Dividend Assets Composite".
Recalculated "Percentage Dividend Assets-Class Z/No Fee" where
applicable, by dividing "Adjusted Dividend Assets-Class Z" by
"Adjusted Dividend Assets Composite".
Agreed composite total of each component of income to the primary
accounting system.
Recalculated the allocation for each class of each component of
income for daily dividend funds by multiplying the composite total
by "Percentage Dividend Assets-Class A/Front End", "Percentage
Dividend Assets-Class B(C)/Back End" and where applicable,
"percentage Dividend Assets-Class Z/No Fee", and for non-daily
dividend funds by multiplying the composite total by "Percentage
Assets-Class A/Front End", "Percentage Assets-Class B(C)/Back End"
and where applicable, "Percentage Assets-Class Z/No Fee".
Recalculated "Daily Income," composite and for each class, by
totaling each component of income.
Agreed composite total "Management Fee" and "Other Fixed Expenses"
to the primary accounting system.
Recalculated the allocation for each class of "Management Fee" and
"Other Fixed Expenses" for daily dividend funds by multiplying the
composite total by "Percentage Dividend Assets-Class A/Front End",
"Percentage Dividend Assets-Class B(C)/Back End" and where
applicable, "percentage Dividend Assets-Class Z/No Fee", and non-
daily dividend funds by multiplying the composite total by
"Percentage Assets-Class A/Front End", "Percentage Assets-Class
B(C)/Back End" " and where applicable, "Percentage Assets-Class
Z/No Fee"
Agreed the "12b-1 Fee-Class A/Front End" and "12b-1 Fee-Class
B(C)/Back End" to the respective "PC Expense Worksheet".
Recalculated "Daily Expense," composite and for each class, by
totaling "Management Fee," "12b-1 Fee" and "Other Fixed Expenses".
Recalculated "Daily Net Income" for each class by subtracting
"Daily Expense" from "Daily Income".
Recalculated "Dividend Rate" for each class for daily dividend
funds by dividing "Daily Net Income" by "Dividend Shares Beginning
of Day-Class A/Front End", "Dividend Shares Beginning of Day-Class
B(C)/Back End" and where applicable, "Dividend Shares Beginning of
Day-Class Z/No Fee".
Agreed "Daily Income" and "Income Distribution" for each class to
the primary accounting system.
Agreed the "Capital Gain Distribution" to the amount recorded in
the primary accounting system.
Agreed composite total "Realized Gain/Loss" and "Unrealized
Appreciation/Depreciation" to the primary accounting system.
Recalculated the allocation for each class of "Realized Gain/Loss"
and "Unrealized Appreciation/Depreciation" by multiplying the
composite amount by the "Percentage Assets-Class A/Front End",
"Percentage Assets-Class B(C)/Back End" and where applicable,
"Percentage Assets-Class Z/No Fee".
Agreed "Prior Days Net Assets" to the previous day's Worksheet.
Recalculated "Net Assets", composite and for each class, by
totaling "Daily Net Income", "Income nDistributed", "Capital Stock
Activity", "Capital Gain Distribution", "Realized Gain/Loss",
"Unrealized Appreciation/Depreciation", and "Prior Days Net
Assets".
Recalculated "NAV Per Share" dividing the "Net Assets-Class
A/Front End", "Net Assets - Class B(C)/Back End" and where
applicable, "Net Assets-Class Z/No Fee" by "Current Shares
Outstanding - Class A/Front End", "Current Shares Outstanding -
Class B(C)/Back End" and where applicable, "Current Shares
Outstanding-Class Z/No Fee", respectively.
Recalculated "Offering Price" for Class A shares by applying the
"Load" percentage as stated in the fund's prospectus.
