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<PAGE> PAGE 3
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<PAGE> PAGE 5
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<PAGE> PAGE 7
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<PAGE> PAGE 8
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SIGNATURE GRACE TORRES
TITLE ASSISTANT TREASURER
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<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000803191
<NAME> PRUDENTIAL EQUITY INCOME FUND, INC.
<SERIES>
<NUMBER> 002
<NAME> EQUITY INCOME FUND (CLASS B)
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-END> OCT-31-1998
<INVESTMENTS-AT-COST> 1,830,565,690
<INVESTMENTS-AT-VALUE> 2,112,650,239
<RECEIVABLES> 22,053,300
<ASSETS-OTHER> 224,440
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 0
<PAYABLE-FOR-SECURITIES> 9,145,690
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 6,367,619
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,702,168,869
<SHARES-COMMON-STOCK> 113,980,502
<SHARES-COMMON-PRIOR> 91,296,710
<ACCUMULATED-NII-CURRENT> 500,009
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 134,664,183
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 282,081,609
<NET-ASSETS> (205,277,212)
<DIVIDEND-INCOME> 62,315,024
<INTEREST-INCOME> 5,461,868
<OTHER-INCOME> 0
<EXPENSES-NET> 30,366,566
<NET-INVESTMENT-INCOME> 37,410,326
<REALIZED-GAINS-CURRENT> 138,053,262
<APPREC-INCREASE-CURRENT> (224,412,031)
<NET-CHANGE-FROM-OPS> (48,948,443)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (36,147,834)
<DISTRIBUTIONS-OF-GAINS> (179,624,728)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,012,745,142
<NUMBER-OF-SHARES-REDEEMED> (740,383,287)
<SHARES-REINVESTED> 198,544,772
<NET-CHANGE-IN-ASSETS> 206,185,622
<ACCUMULATED-NII-PRIOR> (564,897)
<ACCUMULATED-GAINS-PRIOR> 176,230,283
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 10,945,895
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 30,366,566
<AVERAGE-NET-ASSETS> 1,391,826,000
<PER-SHARE-NAV-BEGIN> 20.93
<PER-SHARE-NII> 0.29
<PER-SHARE-GAIN-APPREC> (0.48)
<PER-SHARE-DIVIDEND> (0.28)
<PER-SHARE-DISTRIBUTIONS> (1.89)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 18.57
<EXPENSE-RATIO> 1.66
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
Prudential Equity Income Fund
For the Annual period ended 10/31/98
File number 811-4864
SUB-ITEM 77J
Reclassification of Capital Accounts
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 of Capital
Distributions by Investment Companies. For the fiscal year
ended October 31, 1998 the application of this statement
increased accumulated net realized gain on investments by
$5,366, increase net unrealized appreciation on investments
by $192,220 and decrease undistributed net investment income
by $197,586. Net investment income, net realized gains, and
net assets were not affected by these reclassifications.
.
<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> YEAR
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-END> OCT-31-1998
<INVESTMENTS-AT-COST> 1,830,565,690
<INVESTMENTS-AT-VALUE> 2,112,650,239
<RECEIVABLES> 22,053,300
<ASSETS-OTHER> 224,440
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 0
<PAYABLE-FOR-SECURITIES> 9,145,690
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 6,367,619
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,702,168,869
<SHARES-COMMON-STOCK> 113,980,502
<SHARES-COMMON-PRIOR> 91,296,710
<ACCUMULATED-NII-CURRENT> 500,009
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 134,664,183
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 282,081,609
<NET-ASSETS> (205,277,212)
<DIVIDEND-INCOME> 62,315,024
<INTEREST-INCOME> 5,461,868
<OTHER-INCOME> 0
<EXPENSES-NET> 30,366,566
<NET-INVESTMENT-INCOME> 37,410,326
<REALIZED-GAINS-CURRENT> 138,053,262
<APPREC-INCREASE-CURRENT> (224,412,031)
<NET-CHANGE-FROM-OPS> (48,948,443)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (36,147,834)
<DISTRIBUTIONS-OF-GAINS> (179,624,728)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,012,745,142
<NUMBER-OF-SHARES-REDEEMED> (740,383,287)
<SHARES-REINVESTED> 198,544,772
<NET-CHANGE-IN-ASSETS> 206,185,622
<ACCUMULATED-NII-PRIOR> (564,897)
<ACCUMULATED-GAINS-PRIOR> 176,230,283
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 10,945,895
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 30,366,566
<AVERAGE-NET-ASSETS> 31,345,000
<PER-SHARE-NAV-BEGIN> 20.93
<PER-SHARE-NII> 0.30
<PER-SHARE-GAIN-APPREC> (0.49)
<PER-SHARE-DIVIDEND> (0.28)
<PER-SHARE-DISTRIBUTIONS> (1.89)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 18.57
<EXPENSE-RATIO> 1.66
<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> YEAR
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-END> OCT-31-1998
<INVESTMENTS-AT-COST> 1,830,565,690
<INVESTMENTS-AT-VALUE> 2,112,650,239
<RECEIVABLES> 22,053,300
<ASSETS-OTHER> 224,440
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 0
<PAYABLE-FOR-SECURITIES> 9,145,690
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 6,367,619
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,702,168,869
<SHARES-COMMON-STOCK> 113,980,502
<SHARES-COMMON-PRIOR> 91,296,710
<ACCUMULATED-NII-CURRENT> 500,009
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 134,664,183
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 282,081,609
<NET-ASSETS> (205,277,212)
<DIVIDEND-INCOME> 62,315,024
<INTEREST-INCOME> 5,461,868
<OTHER-INCOME> 0
<EXPENSES-NET> 30,366,566
<NET-INVESTMENT-INCOME> 37,410,326
<REALIZED-GAINS-CURRENT> 138,053,262
<APPREC-INCREASE-CURRENT> (224,412,031)
<NET-CHANGE-FROM-OPS> (48,948,443)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (36,147,834)
<DISTRIBUTIONS-OF-GAINS> (179,624,728)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,012,745,142
<NUMBER-OF-SHARES-REDEEMED> (740,383,287)
<SHARES-REINVESTED> 198,544,772
<NET-CHANGE-IN-ASSETS> 206,185,622
<ACCUMULATED-NII-PRIOR> (564,897)
<ACCUMULATED-GAINS-PRIOR> 176,230,283
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 10,945,895
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 30,366,566
<AVERAGE-NET-ASSETS> 103,474,000
<PER-SHARE-NAV-BEGIN> 21.00
<PER-SHARE-NII> 0.52
<PER-SHARE-GAIN-APPREC> (0.51)
<PER-SHARE-DIVIDEND> (0.48)
<PER-SHARE-DISTRIBUTIONS> (1.89)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 18.64
<EXPENSE-RATIO> 0.66
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
To the Shareholders and Board of Trustees of
Prudential Equity Income Fund
(2)
Report of Independent Accountants
To the Shareholders and Board of Trustees of
Prudential Equity Income Fund
In planning and performing our audit of the financial
statements of Prudential Equity Income Fund (the "Fund") for
the year ended October 31, 1998, 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
controls. Generally, controls 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 controls include the safeguarding of assets against
unauthorized acquisition, use or disposition.
Because of inherent limitations in internal control, errors or
fraud 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 one or more
of the internal control components does not reduce to a
relatively low level the risk that misstatements caused by
error or fraud 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 and its operation,
including controls for safeguarding securities, that we
consider to be material weaknesses as defined above as of
October 31, 1998.
This report is intended solely for the information and use of
management, the Board of Trustees of the Fund and the
Securities and Exchange Commission.
PricewaterhouseCoopers LLP
New York, New York
December 18, 1998
