Looks like I finally figured it out! I was definitely missing the obvious.
Code:
.scrivener15 {
font-variant: small-caps
}
.dropfix {
display: inline;
width: auto;
height: 4em;
}
<p class="scrivener15"><img class="dropfix" alt="“O" src="../Images/HIGH-QUALITY-drop-cap-quote.gif" /><span>f course it’s going to hurt.”</span></p>