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002 B000000 NEWARK
002 C000000 NJ
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002 D020000 4077
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<PAGE> PAGE 2
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<PAGE> PAGE 3
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<PAGE> PAGE 4
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<PAGE> PAGE 6
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SIGNATURE GRACE TORRES
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000790202
<NAME> FIRST FINANCIAL FUND, INC.
<SERIES>
<NUMBER> 001
<NAME> FIRST FINANICAL FUND, INC.
<S> <C>
<PERIOD-TYPE> YEAR
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<PERIOD-END> MAR-31-1997
<INVESTMENTS-AT-COST> 233,124,997
<INVESTMENTS-AT-VALUE> 285,259,713
<RECEIVABLES> 5,396,941
<ASSETS-OTHER> 141,119
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 290,797,773
<PAYABLE-FOR-SECURITIES> 1,038,926
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 19,263,255
<TOTAL-LIABILITIES> 20,302,181
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 187,231,444
<SHARES-COMMON-STOCK> 17,728,361
<SHARES-COMMON-PRIOR> 15,623,077
<ACCUMULATED-NII-CURRENT> 757,992
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 30,371,440
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 52,134,716
<NET-ASSETS> 270,495,592
<DIVIDEND-INCOME> 6,219,364
<INTEREST-INCOME> 943,453
<OTHER-INCOME> 0
<EXPENSES-NET> 3,737,964
<NET-INVESTMENT-INCOME> 3,424,853
<REALIZED-GAINS-CURRENT> 62,347,973
<APPREC-INCREASE-CURRENT> 12,733,565
<NET-CHANGE-FROM-OPS> 78,506,391
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (3,196,846)
<DISTRIBUTIONS-OF-GAINS> (51,149,539)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> (5,498,887)
<SHARES-REINVESTED> 37,704,525
<NET-CHANGE-IN-ASSETS> 56,365,644
<ACCUMULATED-NII-PRIOR> 529,985
<ACCUMULATED-GAINS-PRIOR> 19,173,006
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,556,042
<INTEREST-EXPENSE> 1,265,251
<GROSS-EXPENSE> 3,737,964
<AVERAGE-NET-ASSETS> 238,967,000
<PER-SHARE-NAV-BEGIN> 13.71
<PER-SHARE-NII> 0.22
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<PER-SHARE-DIVIDEND> (0.21)
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E:\OSUNKWO\FUNDS\FFF\NSAR-77C.597
For the annual period ended 3/31/97
File number (c) 811-4605
SUB-ITEM 77C
Submission of Matters to a Vote of Security Holders
The Annual Meeting of Stockholders was
held on October 30, 1996. At such meeting
the shareholders approved the following
proposals:
1) RESOLVED, that Mr. Eugene C. Dorsey
be elected to serve as a Class I
Director, and that Mr. Douglas H.
McCorkindale be elected to serve as
a Class III Director, to hold
office until the 1998 and 1999
annual meetings of stockholders,
respectively, and until their
successors shall have been duly
elected and shall have qualified.
Affirmative
Negative Withhold/
Votes Cast
Votes Cast Abstain
Eugene C. Dorsey 8,251,173
0 486,814
Douglas H. McCorkindale 8,253,121
0 484,866
2.) RESOLVED, that the Fund's
fundamental investment limitation
be amended to read as follows: "The
Fund will not issue senior
securities or borrow money except
as permitted under the Investment
Company Act of 1940, and then not
in excess of 33_ percent of its
total assets, except that the Fund
may borrow up to an additional 5
percent of its total assets for
temporary or emergency purposes."
3.) RESOLVED, that the selection of
Deloitte & Touche LLP as
independent accountants for the
Fund for the fiscal year ending
March 31, 1997, conditioned upon
the right of the Fund by vote of a
majority of its outstanding voting
securities at any meeting called
for the purpose to terminate such
employment forthwith without
penalty be, and it hereby is, in
all respects ratified.
Affirmative
Negative Withhold/
Votes Cast
Votes Cast Abstain
8,501,432
113,045 118,037
May 21, 1997
To the Board of Directors of
First Financial Fund, Inc.
In planning and performing our audit of the financial
statements of First Financial Fund, Inc. (the "Fund") for
the year ended March 31, 1997, we considered its internal
control structure, including procedures for safeguarding
securities, in order to determine our auditing procedures
for the purposes of expressing our opinion on the
financial statements and to comply with the requirements
of Form N-SAR, and not to provide assurance on the
internal control structure.
The management of the Fund is responsible for establishing
and maintaining an internal control structure. In
fulfilling this responsibility, estimates and judgments by
management are required to assess the expected benefits
and related costs of internal control structure policies
and procedures. Two of the objectives of an internal
control structure are to provide management with
reasonable, but not absolute, assurance that assets are
appropriately safeguarded against loss from unauthorized
use or disposition and that transactions are executed in
accordance with management's authorization and recorded
properly to permit preparation of financial statements in
conformity with generally accepted accounting principles.
Because of inherent limitations in any internal control
structure, errors or irregularities may occur and may not
be detected. Also, projection of any evaluation of the
structure 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 the internal control structure would
not necessarily disclose all matters in the internal
control structure 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 the specific
internal control structure elements 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 the internal control structure, including
procedures for safeguarding securities, that we consider
to be material weaknesses as defined above as of March 31,
1997.
This report is intended solely for the information and use
of management and the Securities and Exchange Commission.
PRICE WATERHOUSE LLP
April 16, 1997
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, DC 20549
RE: Funds managed or administered by
Prudential Mutual Fund
Management LLC (the "Funds")
Gentlemen:
At meetings held between February 18 and 20,
1997, the Board of Directors of the Funds
(see attached exhibit) approved the
engagement of Price Waterhouse LLP as their
independent auditors for their fiscal years
ending after February 28, 1997 to replace the
firm of Deloitte & Touche LLP effective March
1, 1997.
The reports of Deloitte & Touche LLP on the
Funds' financial statements for the past two
fiscal years did not contain an adverse
opinion or a disclaimer of opinion and were
not qualified or modified as to uncertainty,
audit scope, or accounting principles.
In connection with the audits of the Funds'
financial statements for each of the prior
two fiscal years and in the subsequent
interim period, there were no disagreements
with Deloitte & Touche LLP on any matters of
accounting principles or practices, financial
statement disclosure, or auditing scope and
procedures which, if not resolved to the
satisfaction of Deloitte & Touche LLP, would
have caused Deloitte & Touche LLP to make
reference to the matter in their report.
The Funds have requested Deloitte & Touche
LLP to furnish them a letter addressed to the
Commission stating whether they agree with
the above statements. A copy of that letter,
dated April 16, 1997 is attached hereto.
Sincerely,
Eugene S. Stark Grace
Torres
Treasurer Treasurer
ESS/rr
\Gen-SECLtrPW-4-15-97.doc
Exhibit
B N
Fund o e T
a x r
r t e
d F a
o i s
f s u
D c r
i a e
r l r
e
c Y
t e
o a
r r
M E
e n
e d
t
i
n
g
D
a
t
e
The BlackRock Government 2 6 E
Income Trust / / u
1 3 g
8 0 e
/ / n
9 9 e
7 7 S
.
S
t
a
r
k
Global Utility Fund, Inc. 2 9 G
/ / r
1 3 a
8 0 c
/ / e
9 9 T
7 7 o
r
r
e
s
Prudential Allocation Fund 2 7 G
/ / r
1 3 a
9 1 c
/ / e
9 9 T
7 7 o
r
r
e
s
Prudential California 2 8 E
Municipal Fund / / u
2 3 g
0 1 e
/ / n
9 9 e
7 7 S
.
S
t
a
r
k
Prudential Distressed 2 1 G
Securities Fund, Inc. / 1 r
1 / a
9 3 c
/ 0 e
9 / T
7 9 o
7 r
r
e
s
Prudential Diversified 2 1 E
Bond Fund, Inc. / 2 u
2 / g
0 3 e
/ 1 n
9 / e
7 9 S
7 .
S
t
a
r
k
Prudential Dryden Fund 2 9 E
/ / u
1 3 g
9 0 e
/ / n
9 9 e
7 7 S
.
S
t
a
r
k
Prudential Equity Income 2 1 G
Fund / 0 r
1 / a
9 3 c
/ 1 e
9 / T
7 9 o
7 r
r
e
s
Prudential Europe Growth 2 4 G
Fund, Inc. / / r
2 3 a
1 0 c
/ / e
9 9 T
7 7 o
r
r
e
s
Prudential Global Limited 2 1 G
Maturity Fund, Inc. / 0 r
1 / a
9 3 c
/ 1 e
9 / T
7 9 o
7 r
r
e
s
Prudential Government 2 2 E
Income Fund, Inc. / / u
2 2 g
0 8 e
/ / n
9 9 e
7 8 S
.
S
t
a
r
k
Prudential Institutional 2 3 E
Liquidity Portfolio, Inc. / / u
2 3 g
1 1 e
/ / n
9 9 e
7 7 S
.
S
t
a
r
k
Prudential Jennison Series 2 9 E
Fund, Inc. / / u
1 3 g
9 0 e
/ / n
9 9 e
7 7 S
.
S
t
a
r
k
Prudential MoneyMart 2 1 G
Assets, Inc. / 2 r
2 / a
1 3 c
/ 1 e
9 / T
7 9 o
7 r
r
e
s
Prudential Multi-Sector 2 4 G
Fund, Inc. / / r
1 3 a
9 0 c
/ / e
9 9 T
7 7 o
r
r
e
s
Prudential Municipal Bond 2 4 G
Fund / / r
2 3 a
0 0 c
/ / e
9 9 T
7 7 o
r
r
e
s
Prudential Municipal 2 8 G
Series Fund / / r
2 3 a
0 1 c
/ / e
9 9 T
7 7 o
r
r
e
s
Prudential Pacific Growth 2 1 E
Fund, Inc. / 0 u
2 / g
1 3 e
/ 1 n
9 / e
7 9 S
7 .
S
t
a
r
k
Prudential Special Money 2 6 E
Market Fund, Inc. / / u
2 3 g
1 0 e
/ / n
9 9 e
7 7 S
.
S
t
a
r
k
Prudential Structured 2 1 E
Maturity Fund, Inc. / 2 u
2 / g
0 3 e
/ 1 n
9 / e
7 9 S
7 .
S
t
a
r
k
Prudential World Fund, 2 1 G
Inc. / 0 r
2 / a
1 3 c
/ 1 e
9 / T
7 9 o
7 r
r
e
s
The Global Total Return 2 1 E
Fund, Inc. / 2 u
1 / g
9 3 e
/ 1 n
9 / e
7 9 S
7 .
S
t
a
r
k
The Target Portfolio Trust 2 1 G
/ 2 r
1 / a
8 3 c
/ 1 e
9 / T
7 9 o
7 r
r
e
s
First Financial Fund, Inc. 2 3 G
/ / r
1 3 a
8 1 c
/ / e
9 9 T
7 7 o
r
r
e
s
The High Yield Plus Fund, 2 3 G
Inc. / / r
1 3 a
8 1 c
/ / e
9 9 T
7 7 o
r
r
e
s
E:\DGARFIEL\FUNDS\FIRSTFIN\MISC\NSAR-77Q.597
For the annual period ended 3/31/97
File number (c) 811-4605
SUB-ITEM 77Q2
Section 16(a) Beneficial Ownership Reporting Compliance
For the fiscal year ended March 31, 1996, an
initial statement of beneficial ownership of
the Fund's shares on Form 3 was not filed on
behalf of Douglas H. McCorkindale (Director,
President and Treasurer). In addition, a
Form 5 was not filed on Mr. McCorkindale's
behalf to report the failure to file the Form
3.