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SIGNATURE STEPHEN M. UNGERMAN
TITLE ASST. TREASURER
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<DISTRIBUTIONS-OTHER> (16,087,715)
<NUMBER-OF-SHARES-SOLD> 326,938,731
<NUMBER-OF-SHARES-REDEEMED> (372,493,828)
<SHARES-REINVESTED> 69,779,425
<NET-CHANGE-IN-ASSETS> 137,913,981
<ACCUMULATED-NII-PRIOR> 3,375,392
<ACCUMULATED-GAINS-PRIOR> 60,320,527
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 3,767,455
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 10,423,268
<AVERAGE-NET-ASSETS> 986,341,000
<PER-SHARE-NAV-BEGIN> 15.39
<PER-SHARE-NII> 2.19
<PER-SHARE-GAIN-APPREC> 0.00
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> (0.88)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 16.70
<EXPENSE-RATIO> 1.70
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000803191
<NAME> PRUDENTIAL EQUITY INCOME FUND, INC.
<SERIES>
<NUMBER> 003
<NAME> EQUITY INCOME FUND (CLASS C)
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-END> APR-30-1997
<INVESTMENTS-AT-COST> 1,198,635,049
<INVESTMENTS-AT-VALUE> 1,460,176,918
<RECEIVABLES> 18,128,806
<ASSETS-OTHER> 528,208
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 0
<PAYABLE-FOR-SECURITIES> 11,426,958
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 4,807,950
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,151,690,105
<SHARES-COMMON-STOCK> 87,518,077
<SHARES-COMMON-PRIOR> 86,004,429
<ACCUMULATED-NII-CURRENT> 2,553,275
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 46,810,827
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 261,544,817
<NET-ASSETS> (173,522,506)
<DIVIDEND-INCOME> 23,093,956
<INTEREST-INCOME> 2,611,608
<OTHER-INCOME> 0
<EXPENSES-NET> 10,423,268
<NET-INVESTMENT-INCOME> 15,282,296
<REALIZED-GAINS-CURRENT> 46,693,683
<APPREC-INCREASE-CURRENT> 128,021,470
<NET-CHANGE-FROM-OPS> 189,997,449
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (60,220,081)
<DISTRIBUTIONS-OTHER> (16,087,715)
<NUMBER-OF-SHARES-SOLD> 326,938,731
<NUMBER-OF-SHARES-REDEEMED> (372,493,828)
<SHARES-REINVESTED> 69,779,425
<NET-CHANGE-IN-ASSETS> 137,913,981
<ACCUMULATED-NII-PRIOR> 3,375,392
<ACCUMULATED-GAINS-PRIOR> 60,320,527
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 3,767,455
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 10,423,268
<AVERAGE-NET-ASSETS> 9,531,000
<PER-SHARE-NAV-BEGIN> 15.39
<PER-SHARE-NII> 2.19
<PER-SHARE-GAIN-APPREC> 0.00
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> (0.88)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 16.70
<EXPENSE-RATIO> 1.70
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000803191
<NAME> PRUDENTIAL EQUITY INCOME FUND, INC.
<SERIES>
<NUMBER> 004
<NAME> EQUITY INCOME FUND (CLASS Z)
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-END> APR-30-1997
<INVESTMENTS-AT-COST> 1,198,635,049
<INVESTMENTS-AT-VALUE> 1,460,176,918
<RECEIVABLES> 18,128,806
<ASSETS-OTHER> 528,208
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 0
<PAYABLE-FOR-SECURITIES> 11,426,958
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 4,807,950
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,151,690,105
<SHARES-COMMON-STOCK> 87,518,077
<SHARES-COMMON-PRIOR> 86,004,429
<ACCUMULATED-NII-CURRENT> 2,553,275
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 46,810,827
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 261,544,817
<NET-ASSETS> (173,522,506)
<DIVIDEND-INCOME> 23,093,956
<INTEREST-INCOME> 2,611,608
<OTHER-INCOME> 0
<EXPENSES-NET> 10,423,268
<NET-INVESTMENT-INCOME> 15,282,296
<REALIZED-GAINS-CURRENT> 46,693,683
<APPREC-INCREASE-CURRENT> 128,021,470
<NET-CHANGE-FROM-OPS> 189,997,449
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (60,220,081)
<DISTRIBUTIONS-OTHER> (16,087,715)
<NUMBER-OF-SHARES-SOLD> 326,938,731
<NUMBER-OF-SHARES-REDEEMED> (372,493,828)
<SHARES-REINVESTED> 69,779,425
<NET-CHANGE-IN-ASSETS> 137,913,981
<ACCUMULATED-NII-PRIOR> 3,375,392
<ACCUMULATED-GAINS-PRIOR> 60,320,527
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 3,767,455
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 10,423,268
<AVERAGE-NET-ASSETS> 50,097,000
<PER-SHARE-NAV-BEGIN> 15.42
<PER-SHARE-NII> 2.28
<PER-SHARE-GAIN-APPREC> 0.00
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> (0.96)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 16.74
<EXPENSE-RATIO> 0.70
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
For the semi-annual period ended 4/30/97
File number : 811-4864
SUB-ITEM 77 D
Policies with Respect to Securities Investments
A) On February 19, 1997 the Directors approved a
change in investment policy permitting the Fund to hold up to 15%
of its net assets in repurchase agreements which have a maturity
of longer than 7 days or in other illiquid securities.
n-sar/pif2-97/77d
February 25, 1997
Mr. Richard A. Redeker, President
Prudential Mutual Funds
Gateway Center Three
100 Mulberry Street
Newark, New Jersey 07102-4072
Dear Mr. Redeker:
This is to confirm that the client-auditor relationship
between
Deloitte & Touche llp and the following Prudential Mutual
Funds
has been terminated:
The BlackRock Government Income Trust
Global Utility Fund, Inc.
Prudential Allocation Fund
Prudential California Municipal Fund
Prudential Distressed Securities Fund, Inc.
Prudential Diversified Bond Fund, Inc.
Prudential Dryden Fund
Prudential Equity Income Fund
Prudential Europe Growth Fund, Inc.
Prudential Global Limited Maturity Fund, Inc.
Prudential Institutional Liquidity Portfolio, Inc.
Prudential Jennison Series Fund, Inc.
Prudential MoneyMart Assets, Inc.
Prudential Multi-Sector Fund, Inc.
Prudential Municipal Bond Fund
Prudential Municipal Series Fund
Prudential Pacific Growth Fund, Inc.
Prudential Special Money Market Fund, Inc.
Prudential Structured Maturity Fund, Inc.
Prudential World Fund, Inc.
The Global Total Return Fund, Inc.
The Target Portfolio Trust
Yours very truly,
DELOITTE & TOUCHE LLP
New York, New York
cc: Office of the Chief Accountant
SECPS Letter File
Securities and Exchange Commission
Mail Stop 9-5
450 5th Street, N.W.
Washington, D.C. 20549
April 16, 1997
Securities and Exchange Commission
450 5th Street, N.W.
Washington, D.C. 20549
Dear Sirs:
We have read and agree with the comments contained in the
attached letter dated April 16, 1997.
Yours truly,
DELOITTE & TOUCHE LLP
New York, New York
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
Board of Next
Fund Director Fiscal
Treasurer
Meeting
Date Year
End
The BlackRock Government 2/18/97 6/30/97
Eugene S.
Income Trust Stark
Global Utility Fund, Inc. 2/18/97 9/30/97 Grace
Torres
Prudential Allocation Fund 2/19/97 7/31/97 Grace
Torres
Prudential California 2/20/97 8/31/97
Eugene S.
Municipal Fund Stark
Prudential Distressed 2/19/97 11/30/9 Grace
Securities Fund, Inc. 7
Torres
Prudential Diversified 2/20/97 12/31/9
Eugene S.
Bond Fund, Inc. 7 Stark
Prudential Dryden Fund 2/19/97 9/30/97
Eugene S.
Stark
Prudential Equity Income 2/19/97 10/31/9 Grace
Fund 7
Torres
Prudential Europe Growth 2/21/97 4/30/97 Grace
Fund, Inc.
Torres
Prudential Global Limited 2/19/97 10/31/9 Grace
Maturity Fund, Inc. 7
Torres
Prudential Government 2/20/97 2/28/98
Eugene S.
Income Fund, Inc. Stark
Prudential Institutional 2/21/97 3/31/97
Eugene S.
Liquidity Portfolio, Inc. Stark
Prudential Jennison Series 2/19/97 9/30/97
Eugene S.
Fund, Inc. Stark
Prudential MoneyMart 2/21/97 12/31/9 Grace
Assets, Inc. 7
Torres
Prudential Multi-Sector 2/19/97 4/30/97 Grace
Fund, Inc.
Torres
Prudential Municipal Bond 2/20/97 4/30/97 Grace
Fund
Torres
Prudential Municipal 2/20/97 8/31/97 Grace
Series Fund
Torres
Prudential Pacific Growth 2/21/97 10/31/9
Eugene S.
Fund, Inc. 7 Stark
Prudential Special Money 2/21/97 6/30/97
Eugene S.
Market Fund, Inc. Stark
Prudential Structured 2/20/97 12/31/9
Eugene S.
Maturity Fund, Inc. 7 Stark
Prudential World Fund, 2/21/97 10/31/9 Grace
Inc. 7
Torres
The Global Total Return 2/19/97 12/31/9
Eugene S.
Fund, Inc. 7 Stark
The Target Portfolio Trust 2/18/97 12/31/9 Grace
7
Torres
First Financial Fund, Inc. 2/18/97 3/31/97 Grace
Torres
The High Yield Plus Fund, 2/18/97 3/31/97 Grace
Inc.
Torres
