This message was posted on behalf of Intel Corporation
Thanks for reaching out!
I just installed dnsmasq just like you. Indeed dnsmasq.conf is not stored in /etc/, however, I was able to find that it is in /home/root/dnsmasq-2.77/dbus/dnsmasq.conf (assuming that you untared the source in /home/root).
I'm not sure why this file is not being moved to the expected path, if you copy the file from /home/root/dnsmasq-2.77/dbus/dnsmasq.conf and you still have issues, I suggest you to contact dnsmasq's developers (http://www.thekelleys.org.uk/) in order to get further assistance.
I hope this information helps you,