thank you for your replies
@RbnJrg
Nice drop caps - but I wouldn't know how to align the float with the text baseline (and keep the Kindle option for resizing the font) to get a raised cap. Always fascinating to see what css is supported (and what not).
@GrannyGrump
Yeah - your css works (with CalibreReader/Editor). The 120% line-height should be inherited in computed absolute terms by the inline raised cap. But the Kindle KF8 reader seems to check every block/inline element for a minimum of 120% height and to compute the line-height always based on the largest font used in the line. With a raised cap of 150% this isn't a big issue, if you go over 200% it's rather ugly though. With your example (given the size of the caps W) on the Kindle PW you would get a height of approx 150% for the first line in the 120% paragraph.
":first-line with line-height" - don't work, "inline-block" - don't work, "line-height: inherit" - don't work ... I've run out of options