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SIGNATURE STEPHEN M. UNGERMAN
TITLE ASST. TREASURER
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<NUMBER-OF-SHARES-REDEEMED> (432,557,290)
<SHARES-REINVESTED> 83,809,013
<NET-CHANGE-IN-ASSETS> 136,315,633
<ACCUMULATED-NII-PRIOR> 8,846,851
<ACCUMULATED-GAINS-PRIOR> 56,872,291
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 6,851,420
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 19,693,745
<AVERAGE-NET-ASSETS> 951,220,000
<PER-SHARE-NAV-BEGIN> 14.36
<PER-SHARE-NII> 0.39
<PER-SHARE-GAIN-APPREC> 1.71
<PER-SHARE-DIVIDEND> (0.37)
<PER-SHARE-DISTRIBUTIONS> (0.70)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 15.39
<EXPENSE-RATIO> 1.73
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000803191
<NAME> PRUDENTIAL EQUITY INCOME FUND
<SERIES>
<NUMBER> 003
<NAME> PRUDENTIAL EQUITY INCOME (CLASS C)
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-END> OCT-31-1996
<INVESTMENTS-AT-COST> 1,186,591,873
<INVESTMENTS-AT-VALUE> 1,320,106,126
<RECEIVABLES> 7,881,586
<ASSETS-OTHER> 666,825
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,328,654,537
<PAYABLE-FOR-SECURITIES> 2,161,916
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,807,578
<TOTAL-LIABILITIES> 3,969,494
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,127,465,777
<SHARES-COMMON-STOCK> 86,004,429
<SHARES-COMMON-PRIOR> 82,690,208
<ACCUMULATED-NII-CURRENT> 3,375,392
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 60,320,527
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 133,523,347
<NET-ASSETS> 1,324,685,043
<DIVIDEND-INCOME> 48,540,986
<INTEREST-INCOME> 5,852,484
<OTHER-INCOME> 0
<EXPENSES-NET> 19,693,745
<NET-INVESTMENT-INCOME> 34,699,725
<REALIZED-GAINS-CURRENT> 61,035,712
<APPREC-INCREASE-CURRENT> 84,686,616
<NET-CHANGE-FROM-OPS> 180,422,053
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (34,074,447)
<DISTRIBUTIONS-OF-GAINS> (57,584,163)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 396,300,467
<NUMBER-OF-SHARES-REDEEMED> (432,557,290)
<SHARES-REINVESTED> 83,809,013
<NET-CHANGE-IN-ASSETS> 136,315,633
<ACCUMULATED-NII-PRIOR> 8,846,851
<ACCUMULATED-GAINS-PRIOR> 56,872,291
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 6,851,420
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 19,693,745
<AVERAGE-NET-ASSETS> 6,730,000
<PER-SHARE-NAV-BEGIN> 14.36
<PER-SHARE-NII> 0.38
<PER-SHARE-GAIN-APPREC> 1.72
<PER-SHARE-DIVIDEND> (0.37)
<PER-SHARE-DISTRIBUTIONS> (0.70)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 15.39
<EXPENSE-RATIO> 1.73
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000803191
<NAME> PRUDENTIAL EQUITY INCOME FUND
<SERIES>
<NUMBER> 004
<NAME> PRUDENTIAL EQUITY INCOME (CLASS Z)
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-END> OCT-31-1996
<INVESTMENTS-AT-COST> 1,186,591,873
<INVESTMENTS-AT-VALUE> 1,320,106,126
<RECEIVABLES> 7,881,586
<ASSETS-OTHER> 666,825
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,328,654,537
<PAYABLE-FOR-SECURITIES> 2,161,916
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,807,578
<TOTAL-LIABILITIES> 3,969,494
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,127,465,777
<SHARES-COMMON-STOCK> 86,004,429
<SHARES-COMMON-PRIOR> 82,690,208
<ACCUMULATED-NII-CURRENT> 3,375,392
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 60,320,527
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 133,523,347
<NET-ASSETS> 1,324,685,043
<DIVIDEND-INCOME> 48,540,986
<INTEREST-INCOME> 5,852,484
<OTHER-INCOME> 0
<EXPENSES-NET> 19,693,745
<NET-INVESTMENT-INCOME> 34,699,725
<REALIZED-GAINS-CURRENT> 61,035,712
<APPREC-INCREASE-CURRENT> 84,686,616
<NET-CHANGE-FROM-OPS> 180,422,053
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (34,074,447)
<DISTRIBUTIONS-OF-GAINS> (57,584,163)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 396,300,467
<NUMBER-OF-SHARES-REDEEMED> (432,557,290)
<SHARES-REINVESTED> 83,809,013
<NET-CHANGE-IN-ASSETS> 136,315,633
<ACCUMULATED-NII-PRIOR> 8,846,851
<ACCUMULATED-GAINS-PRIOR> 56,872,291
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 6,851,420
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 19,693,745
<AVERAGE-NET-ASSETS> 24,641,000
<PER-SHARE-NAV-BEGIN> 15
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> (0)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 15
<EXPENSE-RATIO> 1
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
For the annual period ended (a) 10/31/96
File number (c) 811-4864
SUB-ITEM 77C
Submission of Matters to a Vote of Security
Holders
A Special Meeting of Shareholders was called
for October 30, 1996. At such meeting the
shareholders approved the following proposals:
a) Approval that Edward D. Beach, Delayne
Dedrick Gold, Robert F. Gunia, Donald
D. Lennox, Douglas H. McCorkindale, Mendel A.
Melzer, Thomas T. Mooney, Stephen P.
Munn, Richard A. Redeker, Robin B. Smith, Louis
A. Weil, III and Clay T. Whitehead are
duly elected to serve as Trustees of the Fund until
the earlier to occur of (i) the next meeting of
Shareholders at which Trustees are elected and until
his or her successor shall have been duly elected
and shall have qualified or (ii) their terms expire
in accordance with the Fund's retirement policy.
b) Approval of the proposed amendment of the
Fund's fundamental investment
restriction regarding investment in shares
of other investment companies, as
described in such Fund's proxy statement.
For Against
Abstain
30,828,109 1,853.447
2,259,891
C) Approval of the proposed elimination of
the Fund's fundamental investment
restriction relating to investment in
securities of unseasoned issuers, as described
in such Fund's proxy statement.
For Against
Abstain
29,823,109 2,584,425
2,425,088
D) Approval of the selection of independent
accountants for the Fund conditioned upon
the right by vote of a majority of such Fund's
outstanding voting shares at any meeting called
for the purpose to terminate such employment
forthwith without penalties.
For Against
Abstain
41,374,283 463,171
1,869,278
E) In their discretion on any other business
which may properly come before the
meeting or any adjournment thereof.
For
the
annual
period
ended
(a)
10/31/
96
File
number
(c)
811-
4864
SUB-
ITEM
77 D
EXHIBI
TS
Policies with respect to security
investment
On May 8, 1996 the Board of Directors
approved the following f changes in investment
restrictions:
(i) The Fund may not:
Invest in securities of other registered
investment companies, except by purchases in the
open market involving only customary brokerage
commissions and as a result of which not more than
10 [5]%
of its total assets (determined at the time of
investment) would be invested in such securities,
or except as part of a merger, consolidation or
other acquisition.*
ii)Subject to shareholder approval, Investment
Restriction number 6 of Prudential Equity Income
Fund is hereby deleted in its entirety and the
following non-fundamental policy is adopted in its
place:
In order to comply with certain "blue sky"
restrictions, the Fund will not as a matter
of operating policy: Purchase any security if
as a result the Fund would then have more
than 5% of its total assets (determined at
the time of the investment) invested in
securities of companies (including
predecessors) less than three years old,
except that the Fund may invest in securities
of any U.S. Government agency or
instrumentality, and in any security
guaranteed by such agency or instrumentality.
(iii) The Trustees hereby authorizes the Fund to
invest in other equity related securities, such as
warrants, preferred stocks and bonds which have
either attached warrants or a conversion privilege
into common stocks
*[Deletions are in brackets.] Additions are
underlined.
For the annual period ended
(a) 10/31/96 File number (c)
811-4864
SUB-ITEM 77 0 EXHIBITS
Transactions Effected Pursuant
to Rule 10f-3 1. Name of Issuer
Convertible Preferred Bond
2. Date of Purchase
06/6/95
3. Number of Securities
Purchased
55,700
4. Dollar Amount of Purchase
$2,785,000
5. Price Per Unit
$50
6. Name(s) of Underwriter(s)
or Dealer(s)
From whom Purchased
Morgan Stanley
7. Other Members of the
Underwriting Syndicate
Bear, Stearns & Co. Inc.
CS First Boston Corporation
Dean Witter Reynolds Inc.
Donaldson, Lufkin, & Jenrette Securities
Corporation First of Michigan
Corporation
Goldman, Sachs & Co.
Gruntal & Co., Incorporated Lehman
Brothers Inc.
Merrill Lynch, Pierce, Fenner & Smith
Incorporated J.P. Morgan Securities Inc.
PaineWebber Incorporated
Prudential Securities
Incorporated Salomon
Brothers Inc.
Roney & Co.
Chase Securities, Inc.
CIBC Wood Gundy
Securities Corp. Sanford
C. Berstein & Co., Inc.
Morgan Stanley & Co.
Incorporated Utendahl
Capital Partners, L.P.
Wheat, First Securities,
Inc.
International Underwriters
Merrill Lynch International
Limited
Credit Lyonnais Euro
Robert Fleming & Co. Limited
Salomon Brothers
International Limited
Morgan Stanley & Co.
International Ltd CS First
Boston Ltd
Lehman Brothers International (Europe)
BVA
Kleinwort Benson Ltd
Morgan Grenfell & Co Ltd
Sunitomo Finance International
Swiss Bank Corp.
NSAR4.DOC - Windows - 11/27/96
PRINT ON COMPAQ
The Board of Trustees of
Prudential Equity Income Fund:
In planning and performing our audit of the
financial statements of Prudential Equity Income
Fund ("Fund") for the year ended October 31, 1996,
we considered its internal control structure,
including procedures 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 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 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 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 October 31,
1996.
This report is intended solely for the information
and use of the Board of Trustees, management and
the Securities and Exchange Commission.
Deloitte & Touche LLP
December 5, 1996
New York, New York
